Business
Acquisition of Ceramiche Serra S.p.A.
Acquisition of Ceramiche Serra S.p.A..
About this update from Victoria Plc
[{"type":"text","content":"\n \nRNS Number : 3881U Victoria PLC 24 October 2017 \n\n24 October 2017\n \nVictoria PLC\n('Victoria', the 'Company', or the 'Group')\n \nAcquisition of \nCeramiche Serra S.p.A.\n \nFurther Expansion in Hard Flooring\n \nVictoria PLC, (LSE: VCP) the international designers, manufacturers and distributors of innovative flooring, is pleased to announce it has agreed to acquire Italian ceramic flooring manufacturer, Ceramiche Serra S.p.A. (\"Serra\") (the \"Acquisition\"), for cash consideration of up to €56.5 million (£50.4 million) (the \"Total Consideration\"), net of cash acquired as part of the Acquisition, to be funded from the Company's cash reserves and existing debt facilities. \n \n€36.5 million (£32.6 million) of the Total Consideration is to be paid on completion, with the balance of €20.0 million (£17.8 million) (the \"Contingent Consideration\") to be paid over the next four years, subject to the business meeting annual targets in earnings before interest, tax, depreciation and amortisation (\"EBITDA\").\n \nThe Acquisition will be immediately and significantly earnings accretive on completion. \n \nSerra, operating from sites in Serramazzoni, Sassuolo (near Bologna), the heart of the Italian ceramics industry, manufactures ceramic flooring, which is sold domestically and exported internationally. It sells to a combination of wholesalers, retail groups, and independent stores throughout Continental Europe, North America, and the Far East.\n \nThe Acquisition marks Victoria's first move into the ceramic flooring market, which is the largest flooring sector in the world, representing over 60% of flooring sold globally and 30% of flooring sold in Europe. Acquiring Serra therefore opens a large new market to Victoria. The Board believes that there is significant opportunity for further acquisitions in the sector, which should result in a number of commercial, operational and financial synergies - creating additional value for Victoria's shareholders in the medium term.\n \nIn line with Victoria's acquisition criteria, the management team at Serra have committed to running the business as part of Victoria for a minimum period of four years and continuing to develop its growth. \n \nFor the year ended 31 December 2016, Serra generated audited revenues of €28.2 million...