Victoria buys US business for £55m
Carpets group Victoria has bought a flooring distribution business in the United States for £55.1 million as it continues its growth through acquisitions.
The Kidderminster-based group said Cali Bamboo Holdings would expand its existing North American distribution business .
For the year to the end of April, Cali generated revenue of £124.3m.
Victoria said the acquisition of Cali, which was established in 2004, would immediately add to its earnings and extend its US distribution, where the group currently sells around US $33 million of flooring each year.
Chief executive Philippe Hamers said: “Victoria has been successfully selling a significant amount of product into the $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."
Victoria executive chairman Geoff Wilding said Victoria had now invested a little over £160 million in the current financial year to add approximately £27m of earnings before tax 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," he added.
