14th Dec 2016 07:47
LONDON (Alliance News) - Victoria PLC on Wednesday said it has agreed to buy Australian underlay and hard wood flooring manufacturer Dunlop Flooring for GBP20.0 million, and said following completion almost a third of its earnings will come from Australia.
Flooring manufacturer and distributor Victoria said it has purchased Dunlop from Pacific Brands Ltd, which was recently the subject of a successful takeover offer from US-listed Hanesbrands Inc.
The GBP20.0 million, or AUD34.0 million, cash consideration will be funded from Victoria's cash and existing debt facilities.
Victoria said the acquisition is expected to be immediately and "significantly" earnings accretive on completion. For the year ended June 30, Dunlop generated revenue of GBP30.0 million, or AUD50.8 million, and earnings before interest, tax, depreciation and amortisation of GBP3.5 million, or AUD6.0 million.
"Dunlop is another important and strategic acquisition for us, and one which reinforces our strategy of targeting earnings-enhancing acquisitions in addition to organic growth. It will make a positive contribution to Victoria's profits whilst diversifying our market exposure. Post-completion, nearly 30% of Victoria's earnings will come from Australia - a dynamic and growing market and a strong economy," said Chairman Geoff Wilding.
By Hannah Boland; [email protected]; @Hannaheboland
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