Carpet and flooring company Victoria has agreed a new share deal worth more than £215 million from a US firm.
Kansas-based Koch Equity Development has committed to invest £175 million by way of convertible preferred shares and a separate agreement to buy £43.75 million in ordinary shares.
Kidderminster-based Victoria will also buy back more than 8.5 million of its shares, representing 6.82 per cent of the company’s issued share capital, at £3.50 per share.
This will provide a pay back to shareholders of around £29.9 million.
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A statement to the stock exchange said the company had decided to carry out the share buy back because directors felt the group had “excellent long-term prospects” as “flooring will always be needed”.
Executive chairman Geoff Wilding said: “Victoria’s business model has proven resilient this year during the most difficult trading conditions in living memory.
“So, the time has now come to again focus on growth and the capital provided by Koch will enable us to deliver significant value creation while maintaining stable and secure debt leverage ratios.
“I am delighted to bring the capital, resources and deep industrial expertise of the largest privately held company in the United States to Victoria’s next phase of growth as we execute on the exceptional organic growth and acquisition opportunity ahead.”
Koch Equity Development and parent company Koch Industries, which have offices in Wichita and London, focus on acquisitions and industry investments including in global media firm Getty Images.
Koch Industries was founded in 1940 and is one of the largest privately held companies in the United States, with estimated annual revenues as high as $115 billion, presence in more than 70 countries and 130,000 employees worldwide.
Koch Equity Development’s managing director Blake Ressel added: “We are delighted to be partnering with Victoria.
“We have conducted due diligence over the last few months and we are confident in Victoria’s strategy, its management team and the size of the market opportunity.
“We expect our investment to help Victoria accelerate execution of its growth plans.”