26th Nov 2013 11:53
LONDON (Alliance News) - Carpets manufacturer Victoria PLC Tuesday said it will buy peer Globesign Ltd and its Westex Carpets Ltd subsidiary for an initial GBP16 million in cash, a move its hopes will strengthen management of the enlarged group and boost its earnings.
In a statement, Victoria said it will keep Westex as a separate brand, preserving the existing sales, production and administrative operations.
"Westex is one of the finest carpet manufacturers in the UK and I am very pleased Victoria has been able to reach an agreement with the directors, all of whom will be staying with the business for a minimum period of five years," Victoria Chairman Geoff Wilding said.
"The board believes, as a result of the acquisition, the enlarged group will benefit from a strengthened senior management team, with a clear and focused strategy for further turnaround and growth," the company said. "The directors expect the acquisition to be accretive to underlying earnings per share of the company."
Victoria said it will pay further deferred payments for Globesign and Westex as long as certain annual and triennial profit targets are met.
Victoria shares were up 4.3% at 266 pence Tuesday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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