Flooring products maker Victoria reported it would buy the rugs division along with the UK polypropylene carpet and non-woven carpet businesses of Belgium's Balta Group NV for $155.50 million. Completion of the acquisition is subject to complete in April 2022.
Victoria, the largest carpet maker in the United Kingdom, said it would fund the deal through existing cash resources and additional preferred equity from the investment and acquisition arm of Koch Industries, its third-biggest shareholder.
Established in 1964 in Belgium, Balta Group has several operating businesses across different sectors of the commercial and residential flooring industry. The integration of the divisions with Victoria's existing manufacturing and distribution operations are expected to drive material cost synergies, estimated by the board to be more than 15 million euros [$17 million] over the next 2-3 years, which will create significant value for shareholders, the company said. Balta has announced that they decided to sell the divisions to Victoria to refocus their activities on their commercial flooring business.
For more information, visit victoriaplc.com.