Business
Acquisition of Avalon BV & GrassInc. BV
Acquisition of Avalon BV & GrassInc. BV.
About this update from Victoria Plc
[{"type":"text","content":"\n \nRNS Number : 6703W Victoria PLC 13 February 2017 \n\nFor Immediate Release 13 February 2017 \nThe information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.\nVictoria PLC\n('Victoria' or the 'Group')\nAcquisition of Avalon BV & GrassInc. BV\n \nEntry into the European Flooring Market with a new high growth product\n \n \nVictoria PLC, (LSE: VCP) the international designers, manufacturers and distributors of innovative floor coverings, is delighted to announce the acquisition of Avalon BV (\"Avalon\") and GrassInc. BV (\"GrassInc\") (\"the Acquisitions\"), the Netherlands-based designers, producers, and distributers of artificial grass for a total initial cash consideration of €11.2 million (£9.7m1) and deferred consideration of €5.1 million (£4.4m1) to be funded from cash and the Group's existing bank facilities. Additional contingent cash consideration is payable dependent on certain financial targets being met over the next four years.\n \nThe Acquisitions will be immediately earnings-accretive.\n \nEstablished in 2010 (Avalon) and 2011 (GrassInc.) the Acquisitions primarily supply artificial grass for domestic and landscaping purposes across Europe. This is a very high growth - and high margin - segment of the flooring market. Total European demand for artificial grass was approximately 50 million square metres in 2015, with the market for domestic grass forecast to grow 15% year on year through to 2019 and landscaping forecast demand to grow 11% year on year through to 20192.\n \nFor the year ended 31 December 2016, the Acquisitions generated unaudited total revenues of €20.4 millio...