Victoria to buy floor tiles manufacturer Keraben for €274m

The consideration, which is payable in cash on completion, will be satisfied in part through a placing of just under 23m shares at 783p each, to raise to raise gross proceeds of around £180m. The balance of the consideration will be funded from a new €178m banking facility provided by the company's existing group of lenders.

Victoria said the deal is expected to be significantly accretive to earnings per share for its shareholders in the first full year of ownership. In the year ended 31 December 2016, Keraben generated audited revenues of €118.3m, adjusted EBITDA of €36.4m and adjusted EBIT of €27.5m.

Chairman Geoff Wilding said: "We believe that Keraben is a high-quality addition to the group. Notwithstanding its further strong organic growth prospects, the acquisition of Keraben will be materially earnings accretive in the first year of ownership and continues to increase our geographic diversity. Post-completion, over 50% of Victoria's earnings will be generated from outside the UK - continuing our transformation into a genuinely international flooring business.

“We are delighted by the level of support we have received from both existing and new investors, with the placing oversubscribed by a multiple of the funds sought."

At 1250 GMT, the shares were up 7.3% to 849.88p.