Skelmersdale, Lancashire-based bathroom retailer Victorian Plumbing Group announced the acquisition by subsidiary Victorian Plumbing Limited of rival AHK Designs Ltd, trading as Victoria Plum.
Victoria Plum is an online only UK bathroom retailer, headquartered in Doncaster, that has recently been through an administration.
“The purchase price for the acquisition is £22.5m, on a cash free, debt free basis, subject to adjustment for normalised working capital,” said Victorian Plumbing Group.
“The acquisition 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 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.
“Given that Victoria Plum has recently been through an administration and there is already a cost reduction programme in progress, the company intends to continue to trade the business as normal initially, pending finalisation of our integration plan.
“Further information will be provided on 28 May 2024 alongside the company’s interim results for the six month period ended 31 March 2024.”
Victorian Plumbing CEO 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.”
Victorian Plumbing Group said that for the six months ended March 31, 2024, unaudited management accounts indicate that Victoria Plum had book value gross assets of £15.8 million and losses of £3.3 million.