Life Style

Victoria in the UK acquires Balta Group’s rug division

Victoria, an international designer, manufacturer and distributor of innovative flooring, is a profitable UK polypropylene rug division of Balta Group, a Belgian-based flooring company. Acquired together with the carpet and non-woven carpet business. Internationally famous brand “Balta”.

The acquisition will be fully funded by our existing financial resources. However, the Board has had the opportunity to enter into a firm commitment to make more preferred stock investments with KED Victoria Investments, an affiliate of Koch Equity Development.

The Balta brand will be carried over with its own sales proposal. The Belgian factory will be added to the Victoria Group’s manufacturing platform. As a result, the acquisition will give Victoria access to a wider range of manufacturing capabilities and expand its sales network into new areas.

Victoria, an international designer, manufacturer and distributor of innovative flooring, is a profitable UK polypropylene rug division of Balta Group, a Belgian-based flooring company. Acquired together with the carpet and non-woven carpet business. Internationally famous brand “Balta”.

The purchase price will be fully funded from the Group’s cash balance, along with additional preferred stock offered by KED, a substantial shareholder in Victoria. Following recent negotiations, the amount of this subsequent preferred stock has increased since its initial commitment in November 2020, and prices have been reduced.

Full integration of the division with Victoria’s existing manufacturing and distribution operations is expected to promote a very significant cost synergy, which the board estimates at over € 15 million over the next few years, to shareholders. Brings great value.

“The selective acquisition of these two highly complementary businesses will create significant value for Victoria’s shareholders. The rug sector has been a huge success for many years, between the carpet and Victoria’s existing businesses. There are very important business synergies. Both of these are Victorian businesses. We are already very familiar with them. “ Victoria PLC, Group CEO, Philippe Hamers, Said.

With a revenue of € 182.9 million (£ 155 million) in 2020, the rug sector manufactures and sells mechanically woven rugs and is sold in more than 100 countries around the world.

With 2020 sales of € 17.3 million (£ 14.7 million), the non-woven carpet business manufactures technical products for a variety of applications such as automobiles, insulation and carpet linings. It will continue to be managed by Managing Director Franky Viaene and will be integrated into one of the existing departments.

“We are pleased to have reached this mutually beneficial agreement with Victoriaplc. The rug, residential PP and non-woven businesses have found new owners with excellent operations. This transaction has led to commercialization in Europe. You can focus on your business. About the US and European residential PA business by investing in sustainability and growth. “ Balta Group NV, CEO, Cyrille Ragoucy, Said.

“Victoria has spent time building a high quality operations management team with depth and commitment. They are operating profit for the Group’s UK Carpet Division through steady productivity and customer service improvements. Was successfully increased from 5% to 18%. Victorian management is currently focusing on implementing the detailed plans for each recently announced acquisition, with similar profits as the businesses are consolidated. I am confident that we will be able to achieve. “ Jeff Wilding, Chairman of Victoria PLC, Said.

Fiber2Fashion News Desk (RR)



Victoria in the UK acquires Balta Group’s rug division

Source link Victoria in the UK acquires Balta Group’s rug division

Back to top button