Bathroom retailer Victorian Plumbing has acquired its online-only rival, Doncaster’s Victoria Plum for £22.5m.
The purchase by the North West plumbing giant was made on a cash free, debt free basis, subject to adjustment for normalised working capital and has been funded from the company’s existing cash reserves. The purchase price represents c.0.5x Victoria Plum’s estimated annual revenue and reflects the significant strategic value to the company of the similarly named Victoria Plum brand and its associated intellectual property. The Company’s expectation is that Victoria Plum will be broadly break even in the second half of 2024.
Victoria Plum has recently been through an administration, and there is already a cost reduction programme in progress. For the six months ended 31 March 2024, unaudited management accounts indicate that Victoria Plum had book value gross assets of £15.8m and losses of £3.3m.
The new owner intends to continue to trade the business as normal initially, pending finalisation of an integration plan. Further information will be provided on May 28, 2024 alongside the company’s interim results for the six-month period ended March 31, 2024.
Mark Radcliffe, CEO of Victorian Plumbing, said: “I am delighted to announce the acquisition of Victoria Plum, a well-established brand with a solid base of customers, suppliers and product ranges. The acquisition aligns with our ambitions to accelerate our growth. We are pleased to welcome the existing Victoria Plum team to our group and look forward to continuing to provide customers with a fantastic range of bathroom products and accessories.
“This acquisition represents another exciting strategic milestone for the company and, together with the investment in our new distribution centre, provides a unique opportunity to deliver increased shareholder return.”
