Kidderminster-based global flooring company Victoria plc buys Turkish tile business

Victoria plc Graniser tiles

Victoria PLC the international designers, manufacturers and distributors of innovative flooring, is to acquire Graniser, a mid-market manufacturer and exporter of ceramic tiles based in Izmir, Turkey.

For the 12 months ended 31 December 2020, Graniser generated audited revenues of €59.3 million (around £52.8m). Current normalised EBITDA is approximately €9 million (around £7.7m).

Established in 1997, Graniser has been ultimately owned 75 per cent by the Austrian investment company, Bancroft Group and 25 per cent by the European Bank of Reconstruction and Development since 2012.

The company manufactures ceramic tiles from a single 75,000 square meter production facility it owns, close to Izmir port, a major export hub. This factory, which incorporates a cogeneration power plant to improve efficiency and generate energy savings, has a current annual production capacity of 20.8 million square meters, which is not fully utilised, with the opportunity to expand output considerably with limited capital expenditure. (By comparison, Victoria’s existing ceramic tile operations have an annual production capacity of 52 million sqm).

Graniser diversifies Victoria’s ceramic tiles manufacturing footprint into a significantly lower energy, labour and raw material price environment, alongside strict quality governance.

Philippe Hamers, Group Chief Executive of Victoria, said: “Victoria’s ceramic tiles business continues to go from strength to strength. The low-cost manufacturing environment that Graniser offers will give Victoria the ability to leverage its manufacturing expertise and brand strength to further drive operating margins.’

Geoff Wilding, Executive Chairman of Victoria, added: “Following completion of the Acquisition, Victoria will have invested c. £201 million in the current financial year to add approximately £35 million of EBITDA to the Group. Victoria’s strategy of achieving scale through acquisitions and using that scale to extract operational synergies continues to deliver value for the Group and its shareholders.

“e continue to have substantial amounts of capital to deploy and are in active discussions with additional high-quality opportunities to grow our business. Therefore, shareholders can expect further earning accretive acquisitions.”