Victorian Plumbing acquires online retailer Victoria Plum

20th May 2024 09:40

(Sharecast News) - Bathroom retailer Victorian Plumbing has acquired Doncaster-based rival AHK Designs for a purchase price of £22.5m, on a cash-free, debt-free basis.

Victorian Plumbing said on Monday that the acquisition of AHK, which trades as Victoria Plum, was funded from existing cash reserves, with the purchase price representing roughly 0.5x estimated annual revenues and its "significant strategic value".

The AIM-listed company expects Victoria Plum to "broadly break even" in the second half of 2024.

Victorian Plumbing added that given that Victoria Plum has recently been through an administration and there was already a cost reduction programme in progress, it intends to continue to trade the business as normal initially, pending finalisation of its integration plan.

Chief executive Mark Radcliffe 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."

As of 0935 BST, Victorian Plumbing shares were up 6.74% at 91.16p.

Reporting by Iain Gilbert at Sharecast.com