Historic carpet manufacturer Victoria has acquired a rival business in a £12 million deal.
The listed Worcestershire firm has bought UK carpet manufacturer Abingdon Flooring and its wholly owned subsidiaries Alliance Distribution and Distinctive Flooring.
The deal comprises an initial cash payment of £7.65 million and deferred cash consideration of up to £4.5 million based on three-year performance targets.
Operating from facilities in Kidderminster, South Wales and Yorkshire and employing more than 500 people, Abingdon manufactures and distributes mid-range carpets, carpet tiles and hard flooring across the UK.
It produces more than nine million square metres of carpet per year and is one of the UK's largest privately owned manufacturers of carpets whose brands include Stainfree, Wilton Royal and Distinctive Flooring.
All key senior management will be remaining with the business and it will continue to operate independently while benefiting from the synergies of an enlarged group.
In the year to April 2014, Abingdon generated turnover of £75.1 million and pre-tax profit of £2.2 million.
Kidderminster-based Victoria, which returned to profit earlier this year, said the acquisition was in line with its strategy of growing the business with earnings-enhancing acquisitions.
The annual turnover of the enlarged Group will be more than £160 million and will operate from six manufacturing sites in the UK and two in Australia.
The acquisition will be funded using facilities provided by the company's long-standing bankers Barclays and from its newly signed £10 million unsecured loan note facility provided by BGF.
In a separate announcement, Gavin Petken, BGF's regional director for the Midlands, will join the Victoria board.
