Flooring group Victoria PLC has announced the acquisition of several Italian tile companies.

The Board of Victoria PLC, the international designers, manufacturers and distributors of floorcoverings, has acquired the assets and business of ceramic tile distributors, Ceramica Colli and Vallelunga, and the shares of ceramic tile manufacturer, Ceramiche Santa Maria.

Located near Victoria's existing Italian operations, these successful, growing brands also bring significant additional spare production capacity. As a result, they will not only provide an immediate earnings contribution to the Group in their own right, but will enable continued profitable growth at Victoria's already established Italian business, through the utilisation of that spare production capacity.

These acquisitions follow Victoria's recent announcement of the very strong growth that has been achieved by the Group's Italian business. It has recently been operating at full capacity, with some production again being outsourced to third parties in order to meet customer demand. The Board advised shareholders that Victoria was actively looking at opportunities to further expand production capacity in Italy via a repeat of the successful February 2020 acquisition of the factory, plant, and brands of Ceramiche Ascot. The acquisitions announced today achieve that outcome, alleviating production constraints and giving Victoria's Italian business the opportunity for further growth.

Commenting on the acquisitions, Executive Chairman Geoff Wilding said: “International demand for the ceramic tiles produced by our Italian business continues to grow at a remarkable rate due to the successful blend of quality, style, and value. The use of a high proportion of recycled raw materials in the tiles has proven attractive to consumers. However, maintaining service levels for our customers has, in recent months, required the business to outsource production to third parties to meet the ever-increasing demand. This is expensive in terms of margin forgone - and is addressed by this acquisition.

“This is the first - and smallest - of several acquisitions we expect to conclude over the weeks and months ahead. Nevertheless, we are delighted to have acquired these businesses, which are immediately earnings accretive, but will also enable our Italian business to continue its growth and create value for shareholders.”

www.victoriaplc.com