Victoria acquires Spanish ceramic flooring business
By Iain Gilbert
Date: Tuesday 06 Aug 2019
(Sharecast News) - Flooring manufacturer Victoria acquired high-quality Spanish ceramic flooring group Iberoalcorense on Tuesday for an undisclosed sum funded from the company's existing resources.
Victoria said the purchase would be split into a payment on completion and a contingent payment, which was set to be paid in May 2020, subject to Ibero meeting specific performance targets.
The completion payment was said to represent less than 3.0 times' earnings before interest, tax, depreciation and amortisation and, assuming the contingent consideration gets paid in full, Victoria said the total acquisition cost would represent a multiple of less than 5x EBITDA.
Ibero, which generated audited revenues of €30.9m and adjusted EBITDA of €3.1m in 2018, will be immediately earnings accretive on completion. On completion, Victoria's net debt to EBITDA ratio will not increase.
Chairman Geoff Wilding said: "Ibero is a very high-quality manufacturer and is an excellent commercial fit with our existing Spanish ceramic operations and I am delighted that Victoria has secured this acquisition.
"In keeping with our acquisition criteria, Ibero is very well invested in terms of its manufacturing facilities and will be immediately earnings accretive and positively cash generative on completion."
As of 0915 BST, Victoria shares had crept forward 0.67% to 528.50p.
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