Victoria heads to the Continent

The Dutch firms supply artificial grass for landscaping and domestic projects ​on the Continent. Victoria, which has operations in Yorkshire, said this is a high-margin and fast-growing area of the European floor coverings market.

​Victoria has bought​ Avalon and GrassInc​, two Netherlands-based designers, producers, and distributers of artificial grass for a total initial cash consideration of​ ​£9.7m and ​a ​deferred consideration of £4.4m to be funded from cash and the ​g​roup’s existing bank facilities. ​The extra £4.4m in cash is dependent on certain financial targets being met over the next four years.

​Victoria said the​ acquisitions will be immediately earnings-accretive.

Total European demand for artificial grass was approximately 50 million square metres in 2015, with the market for domestic grass forecast to grow 15​ per cent​ year on year through to 2019 and landscaping forecast demand to grow 11​ per cent​ year on year through to 2019.

​​Geoff Wilding, ​c​hairman of Victoria, ​said:​ ​“This represents the first of several acquisitions we will be making in Europe and it elevates our status as being a supplier of innovative flooring products to our growing customer base.

​“​There is already significant demand from our existing UK customers for artificial grass, which is currently being met by our competitors and we are therefore confident there are material revenue synergies for Avalon and Grass Inc. from our UK operations.

“Philippe Hamers, Victoria’s incoming CEO, has enormous experience of taking European-manufactured flooring product into the UK and we look forward to the earnings-enhancing revenues this acquisition will bring while we continue to actively search for valuable acquisitions of this kind across Europe.”​

​Victoria said the production of artificial grass is almost identical to carpet manufacturing and uses similar fibres.