U.K. Carpet Manufacturer Victoria Acquiring Ceramiche Serra SpA

London, UK, October 24, 2017-U.K. carpet retailer Victoria PLC has expanded into the ceramic flooring market via the acquisition of Italian ceramic flooring manufacturer Ceramiche Serra SpA for a total cash consideration of up to EUR56.5 million.

The company will pay EUR36.5 million on completion of the deal and the balance of EUR20.0 million over the next four years, dependent upon Ceramiche Serra achieving certain earnings targets.

"Serra is a very important acquisition for us and one which reinforces our strategy of targeting earnings enhancing acquisitions to expand our business, in addition to our focus on organic growth. It will make an immediate positive contribution to Victoria's performance whilst diversifying our market exposure. Post-completion, nearly 40% of Victoria's earnings will come from outside the UK - continuing our transformation into a genuinely international flooring business," said Victoria's chairman Geoff Wilding.

Victoria expects to fund the deal via cash reserves and existing debt facilities. The acquisition is will be immediately and significantly earnings accretive to Victoria on completion, which is expected to take place in December.

In 2016, Serra generated revenue of EUR28.2 million and adjusted earnings of EUR10.5 million