Victoria to acquire flooring firm Globesign

26th Nov 2013 14:23

Design-led carpet and floor-covering maker Victoria on Tuesday announced that it intends to acquire the entirety of UK peer Globesign for 16m pounds in cash and a further deferred consideration payable on achievement of certain annual and triennial financial targets. The transaction is being structured as a reverse takeover. For that reason the company has today posted a re-admission document in respect of the purchase. Victoria's board highlighted that it believes that the resulting enlarged firm will benefit from a strengthened senior management team, with a clear and focused strategy for further turnaround and growth. All of the directors of Westex, a wholly owned subsidiary of Globesign, will be staying with the business for a minimum period of five years. Westex will continue to operate its own brands within the Victoria group.During the three years ended on February 27th 2013 revenues at Globesign grew from £14.3m to reach £17.5m.As of 15:16 shares of Victoria were rising by 6.47% to the 271.5p level, giving the AIM-listed manufacturer a market capitalisation of £19.1m. Over the last year the company's stock has risen by 21%.AB