Victoria PLC acquires Interfloor Group
Victoria PLC has acquired Rossendale based Interfloor Group, the UK market-leading manufacturer of carpet underlay and related accessories. The Board of Victoria believes the acquisition will continue the Victoria’s strategy of pursuing growth through earnings enhancing acquisitions and enable Interfloor to deliver strong longer term growth as part of the enlarged Group.
Victoria PLC became BGF’s first investment in a publicly listed company in September 2014.
For the year ended 30 May 2015, Interfloor recorded net sales of £72.29 million and EBITDA of £10.02 million.
Geoff Wilding, Chairman of Victoria PLC commented:
“We believe that Interfloor, as the market-leader, will be an excellent addition to the Group, bringing the complementary established underlay brands of Tredaire and Duralay in alongside our growing portfolio of well-respected carpet and hard-flooring brands. In the UK, Interfloor and Victoria share many of the same customers and there will be significant opportunities to capitalise on this.
“In line with our other recent acquisitions, the Acquisition will be materially earnings enhancing and value creating for shareholders. Working in conjunction with the very experienced operational management team at Interfloor, we expect to be able to drive operational efficiency improvements in future years.
“In the Board’s view this is another high quality acquisition and we are pleased to welcome Interfloor to the Group.”
BGF has invested a total of £14.5m in Victoria PLC, (LSE: VCP) the manufacturer, supplier and distributor of design-led carpets and floorcoverings, making an initial investment in September 2014. This was BGF’s first investment in a publicly listed company.
Founded in 1895, Victoria designs, manufactures and distributes carpets and other floor coverings, targeting the mid to high-end market under a number of different brands. Headquartered in Kidderminster and with manufacturing and retail operations in Australia, the business employs over 600 people.
Victoria’s carpets are found in Buckingham Palace, Balmoral Castle, and several other Royal residences – and it manufactured the carpet used in Westminster Abbey for the Royal Wedding and was recently granted a Royal Warrant to Her Majesty The Queen.
Our initial investment took the form of loan notes with a cash-paid coupon, with no capital repayment for the first five years and the capital then repaid over the following three years, as well as an option to buy equity in Victoria PLC at a later date. The investment was unsecured and flexible, in line with our approach as a provider of capital to support companies’ development over the longer term. BGF’s Gavin Petken serves as a non-executive director on Victoria’s Board.
Victoria is led by executive Chairman, Geoff Wilding, who successfully oversaw the acquisition and integration of Westex, which was purchased by Victoria in December 2013.
The business was awarded the ICAEW’s Corporate Development Award 2015 in recognition of its fast growth across the UK.
“Victoria has built a fantastic reputation in the UK and overseas for supplying a wide range of quality flooring materials at a range of price points, with high levels of service. We saw this as an excellent opportunity to back a company with global ambitions and the potential to expand organically and through acquisitions such as Abingdon which adds significantly to the Group’s product offering.
“While Victoria is a listed company, we view it in the same way as our private portfolio companies; a strong UK business with significant growth prospects. For this reason, we are delighted to be working with Geoff and his team.” Gavin Petken, BGF
Regional Director – South
Head of BGF Quoted
Gavin is responsible for leading the investment and portfolio teams in London and Birmingham, covering London, the South East and the Midlands. He is a member of BGF’s executive team and sits on the national Investment Committee.
Gavin is also responsible for managing BGF’s national investment activity in public companies and sits on the board of our first AIM-listed investee business, Victoria plc. He also works closely with BGF’s new Ventures team, funding early-stage technology companies across the UK.
Prior to joining BGF, Gavin was a Managing Director with RBS for over 12 years, latterly as a senior member of the team responsible for the restructuring of RBS’ £270bn non-core businesses, managing the operational improvement and exit of a number of companies including the $7.3bn sale of the bank’s aviation leasing business where he was also a member of the board. Before that, he worked in the Bank’s private equity division, investing in, managing and selling over 20 businesses with 16 directorships of portfolio and bank companies. Gavin also had responsibility for the Bank’s Natwest IT Fund, the South of England Technology Fund, the restructure and sale of an RBS subsidiary, and large US co-investment deals such as Clear Channel, Univision and Alltel.
Before moving to RBS, Gavin headed the investment team of a venture capital fund backed by US fund Providence Equity Partners. He also spent four years in M&A working for Close Brothers Corporate Finance on public market and private transactions.
Gavin is a Chartered Accountant, qualifying with Arthur Andersen in London, with a degree from The University of Leeds, where he studied Psychology, Management Studies and Geography.
“BGF’s goal is to support entrepreneurs and management teams that are focused on growth and have the potential to achieve it. When we meet people who fulfil this criteria we do all we can to align ourselves with their aspirations. Every company we invest in is different – each with its own history, values, structure and risk profile. The fact that we can be flexible in the way we invest makes BGF a hugely rewarding and exciting place to be.”
- Victoria plc (Board Director)