Floorcoverings group Victoria PLC has acquired the business and certain assets of high-quality Spanish ceramic flooring manufacturer, Iberoalcorense.

The purchase price for the acquisition is split into a payment on completion and a contingent payment, which is to be paid in May 2020, subject to Ibero meeting a specific performance target.

The acquisition will be immediately earnings accretive on completion. The completion payment and contingent consideration will be funded from the company's existing resources.

Operating from a site in Castellon, (near Valencia), Ibero is strategically close to the group's existing Spanish ceramics manufacturers, Keraben and Saloni. Founded in 1958, it manufactures high-quality porcelain ceramic flooring, which is sold both domestically and internationally. It sells to a combination of wholesalers, retail groups, and independent stores throughout Europe, North America, and the Middle East.

Geoff Wilding, Chairman of Victoria PLC, commented: "Ibero is a very high-quality manufacturer and is an excellent commercial fit with our existing Spanish ceramic operations and I am delighted that Victoria has secured this acquisition. In keeping with our acquisition criteria, Ibero is very well invested in terms of its manufacturing facilities and will be immediately earnings accretive and positively cash generative on completion.

“It has been 12 months since our last acquisition, Ceramica Saloni, which has now been fully integrated within our Keraben operation and is contributing strongly to our performance with the realisation of material synergies. Our strategy of achieving scale through acquisitions and using that scale to extract operational synergies continues to deliver value for the Group. With a strong management team in place in Spain, we look forward to developing the Ibero business as part of Victoria."

www.victoriacarpets.com