United Kingdom

UK carpet maker Victoria to buy rugs unit of Belgium's Balta

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Nov 29 (Reuters) - Flooring products maker Victoria Plc (VCP.L) said on Monday it would buy the rugs division along with the UK polypropylene carpet and non-woven carpet businesses of Belgium's Balta Group NV (BALTA.BR) for 138 million euros ($155.50 million).

Victoria, the largest carpet maker in the UK, said it would fund the deal through existing cash resources and additional preferred equity from the investment and acquisition arm of Koch Industries, its third-biggest shareholder.

Koch Equity Development (KED) has agreed to invest about 150 million pounds, taking its total preferred equity investment in Victoria to 225 million pounds since subscribing to the company's stock a year ago.

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The 126-year-old firm, which saw strong growth during the COVID-19 pandemic as people refurbished their homes, said the acquisition would be immediately earnings accretive.

Victoria said it expects the investment from KED, which holds a 10.7% stake in the British company, to boost its capital while lowering its costs on the deal.

($1 = 0.8875 euros)

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Reporting by Aby Jose Koilparambil and Muhammed Husain in Bengaluru; Editing by Rashmi Aich and Ramakrishnan M.

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