VCP Victoria Plc

RNS Number:8904C
Victoria PLC
24 October 2002




Issued by Citigate Dewe Rogerson Ltd, Birmingham

Date: Thursday, 24 October 2002         IMMEDIATE RELEASE



                                Victoria P.L.C.

                   Victoria acquires Australian Yarn Spinner



The Board of Victoria P.L.C. ("Victoria") is pleased to announce that it has
today agreed to purchase the business and assets known as Pacific Textiles from
Pacific Textiles Pty Ltd and Antolos Properties Pty Ltd in Australia (the "
Acquisition").



Pacific Textiles is a spinner of carpet yarns, supplying to Victoria Carpets and
other customers in Australia and overseas from its site in Bendigo in the State
of Victoria.  The Acquisition will secure this important source of yarn supply
and will lead to operating efficiencies as the mill starts to be run in
conjunction with Victoria's existing Australian spinning operation at
Castlemaine.  The combined Castlemaine/Bendigo operation will be the major
source of yarn for Victoria's Australian carpet factory and will continue to
supply the existing customers of Pacific Textiles in Australia and overseas.



All existing factory employees of Pacific Textiles will be offered employment
with Victoria Carpets with no loss of entitlements or benefits.



The consideration for the Acquisition is A$6,000,000 (#2,143,000) plus an
adjustment for certain net current assets which will be valued shortly before
completion.  This adjustment is expected to amount to approximately A$650,000
(#232,000) but in any event will not exceed A$700,000 (#250,000).  The
consideration is payable in cash, with A$5,500,000 (#1,964,000) payable on
completion, the net current asset adjustment payable shortly after completion,
and the remaining A$500,000 (#179,000) payable 18 months after completion.  The
Acquisition is due to be completed on 6 November 2002.



The turnover of Pacific Textiles in its last audited accounts, for the year
ended June 2001, was A$11.49 million (#4.10 million), on which it made profits
before interest and tax of A$1.01 million (#0.36 million).  The net assets being
acquired were held in the selling companies' balance sheets at A$7.75 million
(#2.77 million) as at that date.



Commenting on the Acquisition, Victoria's Group Managing Director, Alan Bullock,
said:



"We believe that the acquisition of Pacific Textiles will have significant
strategic benefits for our business in Australia.  Our growth in sales over the
last year has led to an increasing requirement for a reliable source of high
quality yarn.



We are delighted to have been able to secure control of our largest outside yarn
supplier as this will underpin our current business and future growth."



Note: Translated at A$2.80 = #1


Enquiries:
Alan Bullock, Group Managing Director
Mark Lee, Group Finance Director                  Fiona Tooley
Victoria P.L.C.                                   Citigate Dewe Rogerson
Tel: 01562 749300                                 Tel: 0121 455 8370




                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

ACQFEWSALSESEDS

Victoria (LSE:VCP)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024

Victoria (LSE:VCP)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024