Victoria rolls out red carpet for C&H
Kidderminster-based carpet manufacturer Victoria has expanded into the vinyl flooring market with its £450,000 acquisition of C&H Distribution.
Victoria bought the Exeter-based business for an initial £400,000. A further payment of £50,000 will be made provided "mutually agreed sales objectives are achieved", said Victoria.
C&H distributes luxury vinyl tiles, primarily to the contract market in the UK.
After the deal has completed, Victoria will establish a new luxury flooring division within the company.
Paul Shaw, who has more than 23 years of floorcovering experience with Amtico, has been recruited to lead the new venture.
Under the agreement, Victoria has acquired the brand and goodwill together with stocks and certain assets including supplier and sales agreements.
At 31 August 2011, the assets being acquired by Victoria had a net book value of £100,182.
Victoria said the acquisition, which will be funded from its cash resources, is expected to be "earnings enhancing" in its first full year of ownership.
Alan Bullock, Victoria's group managing director, said: "C&H is an important step towards achieving our stated objective of becoming the leading high quality flooring supplier in both Australasia and the UK.
"For a modest outlay, it gives Victoria an immediate and significant entry into the luxury vinyl flooring market, a segment of the market which offers both higher margin and excellent growth potential."
