South West acquisition boosts Victoria offering
WORCESTERSHIRE carpet manufacturer Victoria has bought vinyl floorcovering firm C&H Distribution in a £400,000 deal.
Kidderminster-based Victoria will pay an initial cash sum of £400,000 for the Exeter company, with a further £50,000 due should mutually agreed sales objectives be achieved.
C&H, which employs 10 staff, distributes luxury vinyl tiles, primarily to the contract market in the UK, and will not rename as part of the buyout.
Victoria has acquired the firm’s goodwill together with stocks and certain assets including supplier and sales agreements.
As at the end of last month, the assets being acquired by Victoria had a net book value of £100,182, the plc said in a statement.
The deal has been funded by cash resources and is expected to be earnings enhancing for the group in its first full year of ownership.
Victoria says it plans to create a new luxury flooring division aimed at widening its product offering and expand the C&H portfolio.
It has recruited Paul Shaw, who has 23 years of experience in the floorcovering sector with Amtico, to spearhead this new business but he will not join Victoria’s board.
Group managing director Alan Bullock said: “C&H is an important step towards achieving our stated objective of becoming the leading high quality flooring supplier in both Australasia and the UK.
“For a modest outlay, it gives Victoria an immediate and significant entry into the luxury vinyl flooring market, a segment of the market which offers both higher margin and excellent growth potential.”
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