Victorian Plumbing acquires Victoria Plum
Victorian Plumbing has acquired rival online bathroom retailer Victoria Plum for £22.5 million.
The deal has been financed through cash reserves with the purchase price representing.0.5 x Victoria Plum’s estimated annual revenue.
Victorian Plumbing said the price paid also reflects the significant strategic value to its business of the Victoria Plum brand and its associated intellectual property.
It expects Victoria Plum to be broadly break even in the second half of 2024.
Mark Radcliffe, chief executive 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.”
Victoria Plum has recently been through an administration and currently has a cost reduction programme in progress.
Its new owner will be trading the business as normal initially, pending finalisation of an integration plan.
Radcliffe added: “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.”
