A BRADFORD-based flooring group has been acquired in a £12 million deal which marks the second takeover of a West Yorkshire rival by expanding carpet manufacturer Victoria.

The Kidderminster-based group has acquired Abingdon Flooring Ltd, based in Edward Street, one of the UK’s largest privately-owned carpet manufacturers whose products are sold under the Stainfree, Wilton Royal and Distinctive Flooring brands.

Abingdon also has operations in South Wales and the West Midlands and employs more than 500 people.

The takeover also includes Abingdon subsidiaries Alliance Distribution Limited and Distinctive Flooring Limited, for an initial cash outlay of £7.65 million.

Deferred cash payments of up to £4.5 million will be payable to Abingdon subject to annual performance targets being met for three years.

Victoria said the deal would be cash-enhancing for the business and follows its acquisition of Cleckheaton-based carpet business Westex in December.

The latest deal has been funded through a £10 million loan note facility from Business Growth Fund in its first investment in a publicly-listed company. The Midlands-based fund has previously focused on transactions with private firms. Barclays bank is also backing the deal.

Abingdon, which in addition to making quality carpets also distributes mid-range carpets, carpet tiles and hard flooring across the UK, will continue to operate independently with its growth plans backed by its new owners.

All key senior management will be remaining with the business In the year to March 31, 2014, Abingdon increased to £75.1 million from £70.3 million the previous year, with pre-tax profits rising to £2.2 million from £1.35 million Victoria said the deal was in line with its strategy of growing its business with earnings-enhancing acquisitions. The annual turnover of the enlarged group will be more than £160 million, operating from six manufacturing sites in the UK and two in Australia.

Geoff Wilding, Victoria’s executive chairman, said: “We are delighted that the company has acquired Abingdon with the support of BGF. The acquisition of Abingdon Flooring represents the second significant step forward for Victoria, following the acquisition of Westex in December last year.

“By integrating Abingdon into the group, we anticipate accelerating Victoria’s growth by enhancing its combined offering and reach across the UK.

“Overall, when added to our existing operations, the two acquisitions have together substantially increased the scale, breadth and reach of Victoria’s offering and are expected to be immediately earnings-enhancing.” Our focus is on integrating the business and delivering the synergies and growth we have identified.”