Victorian Plumbing Group acquires Victoria Plum for £22.5m

Victorian Plumbing, the bathroom retailer, has announced the acquisition by Victorian Plumbing Limited, a subsidiary of the company, of the entire issued share capital of AHK Designs Ltd, trading as Victoria Plum in a £22.5m deal.

The acquisition of the online only bathroom retailer is on a cash free, debt free basis, subject to adjustment for normalised working capital. The acquisition has been funded from the company’s existing cash reserves.

The company said 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 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 its 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.

Mark Radcliffe, CEO of Victorian Plumbing, 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.”