Victoria Carpets seeks shareholder permission for proposed £175 million investment & share buyback

Victoria Carpets

Kidderminster-headquartered international carpet and flooring manufacturer, Victoria Carpets, is hoping to raise £175 million in extra funding from Koch Equity Development (KED), part of Koch Industries, one of the largest privately held businesses in America.

The funding, to support continued growth, would be by way of convertible preferred shares to be issued by Victoria, is subject to its shareholders.

In a statement, Victoria Carpets said: “The events of the last few months have revealed some potentially exceptional acquisition possibilities in Europe and the UK to grow Victoria substantially and the purpose of raising the new equity capital is to enable Victoria to move quickly and decisively to capitalise on these potential opportunities.”

The Board believes that the investment from KED will have significant positive attributes for shareholders and lenders. In particular, the future merger and acquisition transactions that the proposed investment will finance, and the consequent anticipated growth in EBITDA, are expected to reduce the Company’s senior leverage ratio and improve the Company’s credit rating over time.

Established in 1895 and listed on the London Stock Exchange since 1963 and on AIM since 2013 (VCP.L), Victoria PLC, is an international manufacturer and distributor of innovative flooring products. The Group, which is headquartered in Kidderminster, UK, designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.

Victoria has operations in the UK, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,400 people across more than 20 sites. Victoria is the UK’s largest carpet manufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in both regions.