Victoria production capacity expands after Graniser acquisition approval

Flooring manufacturer and distributor Victoria updated the market on its acquisition of B3 Ceramics Danismanlik on Thursday, which trades as Graniser.

The AIM-traded firm agreed to acquire Graniser for €8.4m (£7.1m) on completion in November, plus the repayment of €39.8m of net debt.

Victoria said the acquisition was now complete, following regulatory approval from the competition regulator in Turkey.

Settlement of the consideration and Graniser's previous debt was funded entirely from the group's cash balances.

Looking at its trading, Victoria said demand for its products was still strong, with the additional annual production capacity of 21 million square metres from Graniser adding to Victoria's existing 52 million square metres.

“Approximately 70% of Graniser's revenue is denominated in euros, and the business currently generates normalised EBITDA of approximately €9m,” the Victoria board said in its statement.

“Whilst the acquisition will therefore be immediately earnings-enhancing, the synergies with the group's existing ceramic tile operations - in particular by making use of Graniser's spare production capacity - to create additional value for Victoria's shareholders will be actioned without delay.”

At 1028 GMT, shares in Victoria were down 1.91% at 975p.