Two similarly named rival bathroom supply businesses, Victorian Plumbing and AHK Designs, which trades as Victoria Plum, have been brought together in a deal valued at £22.5m. In the past, the businesses had been in dispute over registered trademarks and related keywords used online, following which Victoria Plum was compensated to the tune of £1.75m.
Victorian Plumbing is acquiring its competitor on a cash and debt-free basis subject to adjustment for normalised working capital and is funding the investment from its existing cash reserves.
Victoria Plum, which has been through an administration, has been engaged in a major cost-cutting exercise. As a result, it is expected to achieve breakeven in H2 24.
Mark Radcliffe, Victorian Plumbing CEO, said: “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.”
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