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04 May, 2021 11:07

Victoria acquires Dutch artificial grass and carpets distributor

Flooring, homes, housing, construction, building

Flooring business Victoria said on Tuesday that it acquired Netherlands-based artificial grass and carpets distributor Edel Group for a total cash consideration of €49.4m.

Victoria said the move to expand its artificial landscaping grass business would be immediately earnings-accretive, noting that Edel had generated unaudited total revenues of €47.6m and normalised underlying earnings of €10.0m in 2020.

The AIM-listed group noted that the purchase price was funded entirely from its cash balances, with Victoria's leverage remaining in line with its stated financial policy following completion, with its ratio of total net debt to pro-forma EBITDA of about 3.3x and senior net debt to pro-forma EBITDA of roughly 3.0x.

Chief executive Philippe Hamers said: "Victoria's 2017 investment in the premium artificial landscaping grass sector has been very successful and this acquisition represents an opportunity to create Europe's largest and most profitable business in the sector.

"The addition of production facilities benefits our customers by enabling them to source locally in Europe, avoiding inflationary and disruptive imports from the Far East. Furthermore, the outlook for this product category is positive due to growing consumer acceptance and increasing demand for sustainable products that address climate change."

As of 1100 BST, Victoria shares were up 1.53% at 995.0p.


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Pilling and Co Stockbrokers Ltd. is not responsible for the content or accuracy of third party news articles and we may not share the views of the author or publisher.

We provide third party news for your convenience and information only and make no representation or endorsement whatsoever and hereby exclude all liability for any loss or damage that may be incurred by you as a result of your access or use. Please note that third party content may be subject to terms and conditions imposed by the third party owner of that content.