Skelmersdale-based online retailer Victorian Plumbing has acquired rival Victoria Plum for £22.5m.
Trading under similar names and operating in the same sphere, the two businesses have tussled in the past with Victoria Plum winning a trademark case in court in 2016.
More recently, Doncaster-based Victoria Plum has struggled, entering into administration and making moves to significantly reduce its costs. The agreed price for AHK Designs Ltd, which trades as Victoria Plum, represents 0.5x of its estimated annual revenue.
Meanwhile AIM-listed Victoria Plumbing has enjoyed strong growth. For the year ended 30 September 2023, turnover was £285.1m, up from £269.4m the year before. Gross profit was £134.6m, up from £121.0m.
The company is also taking on a new 544,000 sq ft home in Leyland.
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."
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