Proposed Acquisition of Globesign Limited

RNS Number : 9220T

Victoria PLC

26 November 2013

 



THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO OR FROM ANY JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OF LOCAL APPLICABLE SECURITIES LAWS OR REGULATIONS.

26 November 2013

Victoria PLC

('Victoria', the 'Company' or the 'Group')

Proposed Acquisition of Globesign Limited

Posting of Re-Admission Document and

Notice of General Meeting

Victoria PLC (AIM: VCP), a manufacturer, supplier and distributor of design-led carpets and other floorcoverings, is pleased to announce the proposed acquisition of the entire issued share capital of UK carpet manufacturer Globesign Limited ("Globesign") and its wholly owned subsidiary, Westex Carpets Limited ("Westex"), for initial cash consideration of £16.0 million and further deferred consideration payable on achievement of certain annual and triennial profit targets ("Acquisition").  No shares in the Company are being issued in respect of the Acquisition and there will be no changes to Victoria's board of directors.

The Board believes, as a result of the Acquisition, the Enlarged Group will benefit from a strengthened senior management team, with a clear and focused strategy for further turnaround and growth.  The Directors expect the Acquisition to be accretive to underlying earnings per share of the Company.

The Acquisition constitutes a reverse takeover under Rule 14 of the AIM Rules for Companies and is therefore subject to shareholder approval.  Accordingly, the Company has today posted a re-admission document in respect of the Acquisition together with notice of a general meeting of shareholders in the Company to be held at the offices of Brown Rudnick LLP, 8 Clifford Street, London W1S 2LQ at 10am on 13 December 2013. The admission document is also available at the Company's website: www.victoriaplc.com.

Geoff Wilding, Executive Chairman of Victoria PLC, commented:

"Westex is one of the finest carpet manufacturers in the UK and I am very pleased Victoria has been able to reach an agreement with the directors, all of whom will be staying with the business for a minimum period of five years.

"As a result there will not be any changes to the existing sales, production and administrative operations at Westex following the Acquisition. Westex will continue to operate its own brands within the Victoria PLC group, maintaining the same level of high quality service for its customers."

Ends

Enquiries:

Victoria PLC Geoff Wilding	[phone]
Cantor Fitzgerald Europe Rick Thompson, David Foreman (Corporate finance) Richard Redmayne (Corporate broking)	[phone]
MHP Nick Denton                                        Vicky Watkins	[phone]

Notes to Editors

Overview of Victoria PLC

Victoria PLC, with its head offices in Kidderminster, Worcestershire, is a well-established international manufacturer and distributor of carpets and floorcoverings to the mid to high-end residential and commercial sectors through its three geographical divisions in the UK, Australia and Canada.

Overview of Globesign Limited

Globesign is a private limited company based in Cleckheaton, West Yorkshire, controlled and owned by the Vendors, which has a wholly owned subsidiary called Westex Carpets.  The principal activity of Westex is the manufacture and sale of carpets.  The business operates from two dedicated manufacturing locations which include the spinning and dyeing of yarn and the manufacture of a wide range of carpet types and colours.

Revenue and profit before taxation of Globesign has increased from £14.3 million and £3.1 million respectively during the year ended 27 February 2010 to a record £17.5 million and £3.7 million respectively during the year ended 2 March 2013.

 

END

 

 

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