Kidderminster firm makes ‘step-change’ £55m US acquisition
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Kidderminster flooring firm Victoria has acquired a US distributor in a £55.1m deal.
The listed company has swooped for Cali Bamboo Holdings, which last year generated revenues of £124.3m.
Victoria says the move will “create opportunities for value-creating revenue synergies” by expanding its US distribution. The acquisition also gives Victoria access to the intellectual property and online management experience of Cali.
Philippe Hamers, group chief executive, said: “Victoria has been successfully selling a significant amount of product into the US$29 billion – and growing – US market for many years. The acquisition of Cali represents a step-change for the group presenting both revenue synergies alongside meaningful exposure to the fast-growing online sales channel. We will also be using the knowledge and online systems developed by Cali to partner with our existing key retailers in the UK, Europe, and Australia to accelerate our growth and earnings in these markets.
“Cali has a very high-quality management team who are passionate about the business and the result is indisputable: it has been organically growing revenues at more than 17% annually for the last five years with strong operating cash conversion.”
Geoff Wilding, executive chairman, said: “Victoria has now invested a little over £160 million in the current financial year to add approximately £27 million of EBITDA to the Group. This is a significant acquisition for Victoria and helps towards our objective of increasing our commitment to North America where the practical support and deep sector experience of Koch Equity Development has proven invaluable.
“We continue to have substantial amounts of capital to deploy and are in active discussions with additional high-quality opportunities to grow our business. Therefore, shareholders can expect further acquisitions.”