Victoria PLC Proposed Acquisition of Globesign Limited
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."