Business
Acquisition of Ibero Ceramica
Acquisition of Ibero Ceramica.
About this update from Victoria Plc
[{"type":"text","content":"\n \nRNS Number : 9679H Victoria PLC 06 August 2019 \n\n06 August 2019\n \nVictoria PLC\n('Victoria', the 'Company', or the 'Group')\n \nAcquisition of \nIbero Ceramica\n \nFurther Expansion in European Ceramic Flooring\n \nVictoria PLC, (LSE: VCP) the international designers, manufacturers and distributors of innovative flooring, is pleased to announce it has acquired the business and certain assets of high-quality Spanish ceramic flooring manufacturer, Iberoalcorense, S.L (\"Ibero\") (www.iberoceramica.com) (the \"Acquisition\"). \n \nThe purchase price for the Acquisition is split into a payment on completion (the \"Completion Payment\") and a contingent payment, which is to be paid in May 2020, subject to Ibero meeting a specific performance target (the \"Contingent Consideration\"). The Completion Payment represents less than 3x LTM earnings before interest, tax, depreciation and amortisation (\"EBITDA\") of Ibero and, assuming the Contingent Consideration is paid in full, the purchase price for the Acquisition would represent a multiple of less than 5x EBITDA for the 12 months prior to completion.\n \nThe Acquisition will be immediately earnings accretive on completion. The Completion Payment and Contingent Consideration will be funded from the Company's existing resources.\n \nOperating from a site in Castellon, (near Valencia), Ibero is strategically close to the Group's existing Spanish ceramics manufacturers, Keraben and Saloni. Founded in 1958, it manufactures high quality porcelain ceramic flooring, which is sold both domestically and internationally. It sells to a combination of wholesalers, retail groups, and independent stores throughout Continental Europe, North America, and the Middle East.\n \nFor the year ended 31 December 2018, Ibero generated audited revenues of €30.9 million (£28.3 million) and adjusted EBITDA of €3.1 million (£2.8 million).\n \nOn completion, Victoria's net debt to EBITDA ratio1 will not increase. As previously stated, the Board believes leverage is at a comfortable level - especially given the Group's high level of cash generation - and within Victoria's stated acceptable level of debt. \n \nGeoff Wilding, Chairman of Victoria PLC, commented:\n \n\"Ibero is a very high-quality manufacturer and is an excellent commercial fi...