Victoria PLC acquires Graniser

Victoria PLC is continuing to expand its ceramic tile business and operations. In addition to its existing facilities in Italy and Spain, on 10 November the UK-based flooring producer signed an agreement to acquire Turkish company Graniser, a mid-market ceramic tile manufacturer based in Izmir which posted revenues of €59.3 million and an EBITDA of approximately €9 million in 2020. The total consideration to be paid on completion of the operation, expected to take place in December, is €8.4 million plus approximately €39.8 million to repay the company’s net debt.

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

The acquisition is a strategic operation that will bring major commercial and manufacturing synergies for the group.

The factory is equipped with cutting-edge technology and a cogeneration power plant and has an annual production capacity of 20.8 million square metres (not fully utilised), bringing the group’s total capacity to almost 73 million square metres. Planned investments in technology will allow for a significant increase in output volumes in a low-cost manufacturing environment (energy, labour and raw materials). Graniser and Victoria Ceramics will both benefit from exposure to each other’s commercial markets. Graniser will provide further export potential to the Middle East for Victoria, while Victoria’s ceramic tiles division will open high-growth European DIY markets for Graniser. Exports, predominantly to the USA, Israel, the UK and Germany, already account for approximately 75% of Graniser’s sales.

Graniser will continue to operate an independent brand with its own management team, reporting within the Group’s ceramics management structure.

“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,” said Executive Chairman Geoff Wilding. “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,” he explained, adding that discussions are under way to explore interesting new opportunities.

The results for the first half of fiscal 2022, which ended on 2 October, confirm Victoria PLC’s further growth, including total revenues of £489 million (up 60% on the first half of the previous year) and an EBITDA of 17.3%. All divisions posted growth, with ceramics in particular closing the first half of the year with revenues of £182.5 million (+37.7%) and EBITDA of £37.4 million (20.5% of revenues), up 35% on the previous year. Victoria’s operations in both Italy and Spain contributed to the division’s strong performance.