International flooring designer, manufacturer and distributor Victoria, has agreed to acquire the growing rugs division of Belgium-based flooring company Balta Group, along with its UK polypropylene carpet and non-woven carpet businesses, and the Balta brand, for €138m.

Despite having the financial resources to cover the purchase, Victoria's board has arranged a further preferred equity investment with KED Victoria Investments LLC, an affiliate of Koch Equity Development LLC, to support further growth in due course.

The acquisition, which is subject to the conclusion of the carve-out of the various divisions from the rest of the Balta Group, is expected to conclude in April 2022. Balta says it decided to sell the divisions in order to refocus on its commercial flooring business.

The board believes the acquisition presents "an excellent strategic fit with Victoria’s existing business". Post-completion, Victoria’s board expects to have a 16% market share of the UK broadloom carpet market, and a little under 5% share of the UK flooring market as a whole.

Philippe Hamers, group chief executive, Victoria, comments: “This selective acquisition of two highly complementary businesses will be significantly value-creating for Victoria’s shareholders. The rugs division has been hugely successful over many years and there are very material operating synergies between the carpet division and Victoria’s existing business. These are both businesses that Victoria already knows extremely well.”