Interfloor bought for £65m
Haslingden underlay firm Interfloor Group has been purchased by carpet specialists Victoria plc for £65m.Interfloor was created by the merger of Tredaire and Duralay in 2002 though its heritage dates back to the 1940s when Duralay began manufacturing the first carpet underlays in the UK.
The firm employs 300 people, with manufacturing and distribution sites in Haslingden and Dumfries. The company was formed in 2002 as the result of a merger between Tredaire and Duralay.To help fund the acquisition, Victoria raised £31m by placing 2.5m new shares at 1,230p each, and has placed a further 402,633 shares at the same price to raise £5m. In addition, Victoria said it has conditionally placed 711,035 shares at the same price to raise £9m which will be used to augment working capital.
Chairman Geoff Wilding said: "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."