Victoria buys Aussie firm in £20m deal
FLOORING and carpet specialist Victoria has expanded its global reach by acquiring an Australian company.
Listed Victoria has paid £20 million for Dunlop Flooring which makes and distributes underlay and hard wood flooring.
The acquisition would boost earnings, Kidderminster-based Victoria said in an update to the stock exchange.
Dunlop Flooring, which operates from sites in Sydney and Melbourne, also designs and distributes a range of branded wood and vinyl flooring products, selling to a combination of wholesalers, retail groups and independent stores throughout Australia.
This latest acquisition follows last year’s deal to buy Melbournebased Quest Carpets.
It has been acquired from Australian company Pacific Brands, itself recently the subject of a takeover offer from US-listed Hanesbrands.
Completion of the acquisition by Victoria is subject to conditions and is expected to take place during the quarter ending March 2017.
For the year ended June 30, 2016, Dunlop Flooring generated unaudited revenues of £30 million.
Victoria’s chairman Geoff Wilding said: “Dunlop is another important and strategic acquisition for us and one which reinforces our strategy of targeting earningsenhancing acquisitions in addition to organic growth.
“It will make a positive contribution to Victoria’s profits while diversifying our market exposure.
“Post-completion, nearly 30 per cent of Victoria’s earnings will come from Australia – a dynamic and growing market and a strong economy.
“Victoria acquired UK underlay manufacturer Interfloor in September 2015 and we have been highly effective in improving earnings over the last 12 months.
“We anticipate a similar outcome with Dunlop.”
The enlarged Victoria group now has 1,800 employees, with ten sites in the UK and five in Australia.