A KIDDERMINSTER-based carpet firm has announced a £250million acquisition of a European manufacturer.

Victoria Carpets has entered into an agreement to buy the entire share capital of Barcelona based Keraben Grupo S.A. – which makes branded floor and wall ceramic tiles – for £246.5million from Tensile-Keraben Holdings.

To help cover the cost, the company is looking to raise £180million through the sale of millions of shares.

Bosses at Victoria believe the acquisition will support the company’s drive into the European hard flooring market and follows the recent purchase of Italian company Ceramiche Serra, the deal for which is expected to be completed in December.

They also cited Keraben’s strong revenue performance which saw the company generate £106.4million for the year ended December 31 2016. It is anticipated that earnings should be around 10 per cent higher by the same date this year.

Keraben’s current management team will carry on running the Catalan operation as part of the Victoria group for a minimum period of three years to continue to develop its growth.

Geoff Wilding, Chairman of Victoria, said: “We believe that Keraben is a high-quality addition to the group.

“Notwithstanding its further strong organic growth prospects, the acquisition of Keraben will be materially earnings accretive in the first year of ownership and continues to increase our geographic diversity.

“Post-completion, over 50 per cent of Victoria’s earnings will be generated from outside the UK – continuing our transformation into a genuinely international flooring business.

“We are delighted by the level of support we have received from both existing and new investors, with the placing oversubscribed by a multiple of the funds sought.”