Cali Acquired by U.K.'s Victoria
Worcestershire, UK, June 24, 2021-Victoria, England-based designers, manufacturers and distributors of flooring, announced the further expansion of its existing North American distribution business with the acquisition of Cali Bamboo Holdings.
The deal will lead to the expansion of Cali’s product offerings with access to European and Australian substrates, fabrications, partnerships with sister companies, and potentially new markets. Cali will also gain the financial support of the public market and the strategic insights and operational infrastructure of a global flooring powerhouse.
Cali will continue to operate autonomously and will remain ultimately responsible for its topline and bottom-line success.
Key terms of the acquisition
• For the 12 months ended April 30, 2021, Cali generated unaudited total revenues of $171.6 million (2020: $151.1 million) and normalized EBITDA of $13.8 million (2020: $11.7 million).
• Total consideration paid was $76.1 million and was funded entirely from the group’s cash balances. In addition, Cali had approximately $27.8 million of net debt, which was repaid on completion.
The acquisition of Cali will be immediately earnings-accretive.
The integration of Cali with Victoria’s existing business will create opportunities for value-creating revenue synergies by expanding Victoria’s U.S. distribution, where the group currently sells c. $33 million of flooring each year.
However, very significantly, the acquisition also gives Victoria access to the intellectual property and online management experience of Cali, which the group will leverage to partner with its key retailers to accelerate growth in its existing UK, European, and Australasian markets.
Established in 2004, Cali is a multi-channel U.S. flooring distributor with 49.5% of revenue from direct to consumer and direct to contractor channels driven by the Cali website, 29.0% of revenue from speciality retailers (B2B), and 21.5% of revenue from consumers via national home centers.
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