Victoria buys US business for £24.9m
The Kidderminster-based carpets and floor coverings group Victoria has bought a flooring distributor in the United States.
It is paying £24.9 million for Florida-based International Wholesale Tile.
Victoria said the acquisition will immediately add to earnings and cash flow.
IWT, foundrd in 1994 is a speciality distributor of ceramic and porcelain tiles, natural stone, luxury vinyl tiles and decorative glass tiles.It also offers tile and stone installation systems.
Revenue has grown consistently over the last 10 years and the business employs 122.
The existing management has committed to continue to manage the business for a minimum term of four years.
IWT sources product from suppliers in Europe, Asia, and South America and distributes from a 220,000 sq fi distribution facility located in Palm City to more than 1,700 dealers.
The acquisition of IWT continues Victoria's strategy of growing its business in North America by buying successful distributors selling the same categories of product as the Group manufactures and sells in Europe.
Philippe Hamers, group chief executive, said: “Victoria has been profitably selling a significant amount of product into the US$29 billion – and growing – US market for many years. The acquisition of Cali in July 2021 has proven to be very successful and IWT is a further step for Victoria into North America."
Executive chairman Geoff Wilding added: “Whilst the board remains mindful of the macroeconomic headwinds across the globe, it maintains a long-term view in its mission to create wealth for shareholders. Consequently, when very attractive acquisition opportunities arise, we simply focus on ensuring we are buying high quality, resilient businesses at valuations that provide a margin of safety for our shareholders. We believe IWT represents such an opportunity with its steady growth over an extended period, high quality management, and significant synergy opportunities.”
