Victoria agrees £9.7m artificial grass deal
Kidderminster carpet maker Victoria has continued its acquisition drive by taking over two artificial grass makers for an initial £9.7 million.
The company has agreed to buy Avalon BV and GrassInc BV in Holland for 11.2 million euros (£9.7m) plus a deferred 5.1 million euros (£4.4m).
The companies mainly supply artificial grass for domestic and landscaping purposes across Europe.
Victoria said it was a "very high growth – and high margin – segment of the flooring market", with total European demand reaching about 50 million square metres in 2015.
The market for domestic grass is forecast to grow 15 per cent year on year through to 2019 and landscaping is forecast to grow 11 per cent year on year until 2019.
Victoria chairman Geoff Wilding said: "This represents the first of several acquisitions we will be making in Europe and it elevates our status as being a supplier of innovative flooring products to our growing customer base.
"There is already significant demand from our existing UK customers for artificial grass, which is currently being met by our competitors and we are therefore confident there are material revenue synergies for Avalon and GrassInc from our UK operations."
Last year the companies generated revenue of 20.4 million euros (£17.6m) and EBIT of 4.2 million euros (£3.6m). Total net assets acquired on completion were approximately 5.7 million euros (£4.9m).
