14th Jan 2015 08:42
LONDON (Alliance News) - Shares in carpets and floorcoverings company Victoria PLC rose in early trade on Wednesday after the company said it has agreed a deal to buy the Whitestone Weavers group of companies for a total of GBP13.7 million.
Victoria will acquire Whitestone Weavers Ltd, Carpet Line Direct Ltd, Gaskell Mackay Carpets Ltd, View Logistics Ltd and Thomas Witter Carpets Ltd as part of the deal.
The consideration will comprise an initial cash payment of GBP5.7 million, with further deferred consideration totalling GBP8 million payable through to 2018.
Victoria has also agreed a deal to allow Whitestone management to reinvest GBP0.9 million to subscribe to new shares in Victoria. The pricing of the shares will be determined by Victoria's closing price on Wednesday. Early morning, shares in the company were up 13% to 562.00 pence to be among the best performers in the AIM All-Share.
For the financial year to June 30, 2014, Whitestone posted a pretax profit of GBP1.7 million on revenue of GBP33.9 million.
"We are delighted Victoria has been able to acquire the Whitestone group. It is extremely well regarded within the industry and there are significant opportunities for operational synergies, which will improve the service to our customers and enhance the returns to shareholders," said Victoria Executive Chairman Geoff Wilding.
By Sam Unsted; [email protected]; @SamUAtAlliance
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