Vulcan almost doubles stake in Victoria

US investment fund Vulcan Value Partners has almost doubled its shareholding in flooring producer Victoria.

The group upped its stake from 5.27% to 10.17%, making it the fourth shareholder with a shareholding larger than 10%.

In its quarterly letter to investors in December, Vulcan described Victoria as ‘another material contributor during the quarter, is a designer, manufacturer, and distributor of flooring and accessories focused on the middle and high-end markets. The company is the largest manufacturer of carpet in the U.K. and the second largest in Australia. Unlike the United States, the European retail flooring market is highly fragmented which enables Victoria to maintain attractive margins. The company reported strong revenue growth and margin improvement across all of its segments. The management team allocates capital intelligently and are excellent operators. We believe Victoria will continue to grow its market share and has a tremendous opportunity to compound its value at a high rate over the long-term.’

Vulcan describes itself as ‘value investors—business analysts with a long-term time horizon focused on purchasing publicly traded companies that are competitively entrenched at significant discounts to intrinsic worth. Performance is our mission. We believe performance is best achieved through disciplined commitment to our long-term investment philosophy and the highest set of core values. Our goal is to compound capital at real rates of return significantly in excess of inflation over our five-year time horizon.’

VictoriaLVT

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