Victoria PLC’s (LON:VCP) has made its second sizeable ceramics-business acquisition in Spain in the space of a year.
The carpets group has acquired Saloni, a manufacturer of mid to high-end ceramic and porcelain tiles, for €96.7mln (£86.2mln).
READ: Victoria sees full-year profit ahead of expectations for a fifth consecutive year
Victoria is paying cash, which will be partly funded by a placing at 827p to raise £60.5mln.
Renowned for its tile designs, Saloni’s main markets are Spain and France and predominantly new builds and commercial offices.
In November, Victoria bought Keraben in Spain for €274mln, its first acquisition in the country. Saloni is based close to this business and expected to be materially accretive to earnings per share before one-off costs from the start.
In 2017, Saloni generated net revenues of €106.3mln and underlying profits [adjusted EBITDA] of €15.6mln.
Geoff Wilding, Victoria’s chairman, said Saloni is a high-quality addition to the group.
“Notwithstanding its strong organic growth prospects, there are meaningful operational synergies with our existing Spanish ceramics company, which we will move quickly to realise.
“Even before these synergies, the acquisition of Saloni will be materially earnings accretive in the first full year of ownership”
Post-completion, over 65% of Victoria's earnings will be generated from outside the UK, he added.