Business
Acquisition and New Board Appointment
Acquisition and New Board Appointment.
About this update from Victoria Plc
[{"type":"text","content":"\n \nRNS Number : 0290T Victoria PLC 30 September 2014 \n \n\n \n \n30 September 2014\n \nVictoria PLC\n \n('Victoria' or the 'Company')\n \nAcquisition of Abingdon Flooring Limited \n£10m subordinated 2022 unsecured loan note facility from the Business Growth Fund (\"BGF\") and \nNew Board Appointment \n \nAcquisition \n \nVictoria PLC, (LSE: VCP) a manufacturer, supplier and distributor of design-led carpets and floorcoverings, is pleased to announce the acquisition of Abingdon Flooring Limited, a UK carpet manufacturer and its wholly owned subsidiaries, Alliance Distribution Limited and Distinctive Flooring Limited (together \"Abingdon\")(the 'Acquisition'), for an initial cash consideration of £7.655m. Additional deferred cash consideration of up to £4.5m will be payable to the vendors of Abingdon if annual performance targets for increased EBIT are achieved over a three year period. Victoria will retain Abingdon's existing bank facilities with RBS. \n \nOperating from facilities in South Wales, Kidderminster, and Yorkshire, and employing a workforce of more than 500 people, Abingdon manufactures and distributes mid-range carpets, carpet tiles and hard flooring across the UK, producing in excess of nine million square metres of carpet per annum. Abingdon is one of the UK's largest privately owned manufacturers of quality carpets, producing a wide range of products under their market leading brands of Stainfree, Wilton Royal and Distinctive Flooring. All key senior management will be remaining with the business and it will continue to operate independently, whilst benefiting from the synergies of an enlarged Group, in its ongoing drive for growth. For the financial year ended 31 March 2014 Abingdon generated turnover of £75.1m, EBIT of £2.5m and profit before tax of £2.2m. Net assets were £8.2m (Year ended 31 March 2013: turnover £70.3m, EBIT of £1.64m, profit before tax of £1.35m, and net assets of £6.75m). \n \nThe Acquisition is in line with Victoria's strategy of growing its business with earnings enhancing acquisitions. The annual turnover of the enlarged Group will be more than £160m, operating from 6 manufacturing sites in the UK and 2 in Australia. \n \n2022 Unsecured Loan Note Facility \n \nThe Abingdon acquisition will be fund...