Victoria buys Aussie flooring manufacturing rival for £20m

Flooring manufacturer Victoria has completed the acquisition of Australian rival Dunlop Flooring for £20m (AU$34m).

The AIM-quoted company said that all conditions regarding the acquisition, which is expected to be earnings accretive, have been fulfilled.

Dunlop Flooring, whose management team will continue to run the business as part of Victoria, was bought from Pacific Brands, which was recently bought by US-listed Hanesbrands.

Victoria’s chairman Geoff Wilding said that Dunlop Flooring complements the company’s existing Australia operations and is in line with its growth strategy of buying profitable and growing flooring businesses that are earnings accretive.

He added: “The group continues to look for further earnings accretive acquisitions, particularly in Europe, whilst maintaining our core focus on wealth creation for shareholders."

For the year ended 30 June 2016, Dunlop Flooring generated unaudited revenues of AU$50.8m (£30m), earnings, before interest, tax, depreciation and amortisation EBITDA of AU$6m (£3.5m), and earnings before interest and tax (EBIT) of AU$4.9m(£2.9m)

On completion of the acquisition, Victoria's net debt to EBITDA ratio is less than two times, which is “well within Victoria's stated acceptable level of debt”.

Shares in Victoria were up 1.17% to 442.13p at 1308 GMT.