Victorian Plumbing has acquired rival Victoria Plum in a £22.5 million deal, boosting its market position.
The purchase comes less than seven months after Doncaster-based Victoria Plum entered administration.
As part of the acquisition, a cost reduction programme is underway, which will result in job cuts. Victorian Plumbing’s shares surged 6.79% to 91.20p following the announcement.
CEO Mark Radcliffe described the deal as a strategic milestone, enhanced by the firm’s new distribution centre, with expectations of improved shareholder returns.
Victoria Plum is projected to break even by the second half of 2024.
Prior to its collapse, the company employed 300 people, though after administration, around 140 staff were transferred to Victorian Plumbing.
The collapse of Victoria Plum was attributed to rising shipping costs and reduced consumer spending.
Victorian Plumbing currently operates with 600 employees across nine sites in Lancashire, Manchester, and Birmingham.
