Victoria PLC makes second acquisition in Spain with purchase of Ceramica Saloni

On 6 August, Victoria PLC, a UK-based flooring production and distribution multinational with its core business in the carpet sector, announced the acquisition of Ceramica Saloni, a well-known manufacturer of mid to high-end ceramic and porcelain tiles owned by Mosaiq (a group operating in the construction and environmental management sector).

The operation is valued at 96.7 million euros. For the British group listed on the London Stock Exchange, this is the third ceramic-business acquisition in under a year following the purchase of Ceramica Serra in Italy (value 56.5 million euros) and Keraben in Spain (274 million euros), both concluded in November 2017.

Ceramica Saloni is based in Alcora (Castellón) and has production facilities covering an area of approximately 270,000 sq.m with more than 500 employees. In 2017, Saloni generated net revenues of 106.3 million euros and adjusted EBITDA of 15.6 million euros. “Saloni is a high-quality addition to the group,” said Geoff Wilding, chairman of Victoria PLC. “Notwithstanding its strong organic growth prospects, there are meaningful operational synergies with Keraben, our existing Spanish ceramics company, which we will move quickly to realise. Even before these synergies, the acquisition of Saloni will be materially earnings accretive in the first full year of ownership,” he added.

Victoria PLC’s expansion in the tile sector is part of an organic growth strategy aimed at diversifying and internationalising its operations with a view to becoming a multinational flooring group. Once the acquisition was completed, Wilding said over 65% of Victoria’s earnings would be generated from outside the UK. In the tax year to 31 March 2018, Victoria PLC posted consolidated revenues of £424.8 million (up 29% on the previous year) and 42% growth in EBITDA to £64.7 million.