Victoria strengthens underlay offer with £19.5m Ezi Floor deal
Victoria has continued with its acquisition policy, agreeing to pay up to £19.5m for underlay manufacturer Ezi Floor.
The deal, funded by the group’s bank borrowings, will see it pay £6.5m up front, £1.625m annually for the next four years and up to £6.5m over the next four year if profits are improved over the period.
Victoria says Ezi Floor will have EBITDA of £2.4m in the year to 31 March 2017 and it is looking to continue its cross-selling of underlay and carpets which began with last year’s purchase of Interfloor.
‘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 highly regarded within the industry, fits very well with our growth strategy, and delivers immediately accretive earnings’, says Geoff Wilding, Victoria executive chairman.
‘We believe underlay to be a real opportunity and Victoria is already actively looking at other opportunities in the underlay sector. 12 months ago Victoria acquired underlay manufacturer Interfloor. Since then, cross selling opportunities almost all consumer carpet purchases require underlay and purchasing improvements as a result of the group's scale have successfully and significantly improved the earnings of that business.
‘The integration of our previous acquisitions has been completed, and 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.’