Victoria PLC, a leader in the flooring industry, has confirmed the sale of its Turkish ceramic tile business, Graniser, for €36.8m (£30.9m). The agreement includes an upfront payment of €10m, while the buyer assumes €26.8m in net debt. This move is part of Victoria's strategy to streamline its balance sheet while securing ongoing access to tile supplies.
Photo: Victoria PLC.
Graniser, headquartered in Izmir, Turkey, has faced operational difficulties in recent years due to market instability. For the financial year ending March 30, it reported revenues of TRY 994.8m (£30.1m) and an EBITDA of TRY 13.4m. Despite these challenges, Victoria has negotiated a long-term supply deal with the new owner, Hasan Akgün, ensuring access to tiles at competitive manufacturing rates.
The buyer, Mr. Akgün, is part of the Akgün family, which founded the Akgün Group in 1925. This family-run conglomerate, one of Turkey's largest, operates in sectors such as construction materials, automotive, and logistics, employing 5,000 workers across 17 factories.
Victoria originally acquired Graniser to capitalise on Turkey's cost advantages in energy, labour, and raw materials for tile production. By selling the subsidiary but maintaining a supply relationship, the company preserves these benefits while unlocking capital for other growth opportunities.
The sale of Graniser highlights Victoria's commitment to enhancing its financial health and focusing on its core business segments. This strategic decision positions the company to address ongoing challenges while leveraging new opportunities across its global operations.
Source: www.sharecast.com