Flooring firm’s Italian job sees £30m triple acquisition
Kidderminster-based flooring firm Victoria has two acquired two Italian firms in a deal worth £30.2m.
Victoria has bought ceramic tile distributors, Ceramica Colli and Vallelunga, and the shares of ceramic tile manufacturer, Ceramiche Santa Maria.
These acquisitions follow Victoria’s recent announcement of the “very strong” growth that has been achieved by its Italian business. It has recently been operating at full capacity with some production again being outsourced to third parties in order to meet customer demand. The new deals follow February 2020’s acquisition of the factory, plant, and brands of Ceramiche Ascot.
Executive chairman Geoff Wilding said: “International demand for the ceramic tiles produced by our Italian business continues to grow at a remarkable rate due to the successful blend of quality, style, and value. The use of a high proportion of recycled raw materials in the tiles has proven attractive to consumers. However, maintaining service levels for our customers has, in recent months, required the business to outsource production to third parties to meet the ever-increasing demand. This is expensive in terms of margin forgone – and is addressed by this acquisition.
“This is the first – and smallest – of several acquisitions we expect to conclude over the weeks and months ahead. Nevertheless, we are delighted to have acquired these businesses, which are immediately earnings accretive, but will also enable our Italian business to continue its growth and create value for shareholders.”