International floorcoverings firm Victoria PLC has confirmed the acquisition of underlay manufacturer Ezi Floor, with the partnership set to generate accelerated profitable growth.
Victoria PLC acquired Bradford-based Ezi Floor for an initial cash consideration of £6.5m and deferred consideration of £6.5m, with additional contingent consideration payable dependent on ‘certain financial targets being met over the next four years following completion of the acquisition’.
Victoria said that it expects Ezi Floor’s EBITDA of approximately £2.4m for the year ended 31 March 2017, with total net assets acquired on completion at approximately £5.1m.
Following the acquisition, which was funded from the Group’s existing bank facilities, Victoria also confirmed that ‘key management will remain with the business’ for a minimum period of four years, whilst highlighting that ‘further profitable growth’ would be enhanced due to its ‘Group cross synergies’.
Geoff Wilding, chairman of Victoria PLC, commented: “We are delighted to announce the acquisition of Ezi Floor. It is an efficient operation with very focussed management that will stay with the business, and which is expected to make a positive contribution to Victoria’s profits. The business is highlyregarded within the industry, fits very well with our growth strategy, and delivers immediately accretive earnings.
“Victoria is already benefiting from our strategy of achieving scale through acquisitions and we look forward to integrating Ezi Floor and developing the business as part of Victoria.”