Brown Rudnick Advises Victoria PLC on £175m Preferred Equity Investment by Koch Industries in First Ever US-Style Preferred Share PIPE Deal for a UK Listed Company
PUBLISHED ON: 11/16/2020
London, 16 November 2020: Brown Rudnick advised Victoria PLC on the £175 million Preferred Equity Investment by KED Victoria Investments ("KED"), an affiliate of Koch Equity Development, LLC ("Koch Equity Development"), a wholly owned subsidiary of Koch Industries, Inc. ("Koch Industries").
This is among the first private investment in public equity (PIPE) transaction in a UK listed company structured using Preferred Shares which is a more typical US-style structure.
Lena Hodge, Partner in Brown Rudnick’s Corporate Practice who advised Victoria PLC said: “PIPE deals are hugely popular in the US and this deal is among the first of this structure in the UK. Following this deal, we expect to see an uptick in private equity firms seeking out preferred equity investments in successful and well-managed UK listed companies that operate in attractive growth markets. This will also open up sources of growth capital for companies, particularly those listed on AIM, without the usual dilutive effect on shareholders by issuing ordinary shares.”
Brown Rudnick also advised on Victoria PLC’s £29.91m off-market share buy-back from Invesco Asset Management Limited and its funds.
About Victoria PLC
Established in 1895 and listed since 1963 and on AIM since 2013, Victoria plc is an international manufacturer and distributor of innovative flooring products. The Group, which is headquartered in Kidderminster, UK, designs, manufactures and distributes a range of carpet, flooring underlay, ceramic tiles, LVT (luxury vinyl tile), artificial grass and flooring accessories.
Victoria has operations in the UK, Spain, Italy, Belgium, the Netherlands and Australia and employs approximately 3,400 people across more than 20 sites. Victoria is the UK’s largest carpet manufacturer and the second largest in Australia, as well as the largest manufacturer of underlay in both regions.
The Group’s strategy is designed to create value for its shareholders and is focused on consistently increasing earnings and cash flow per share via acquisitions and sustainable organic growth.
About Brown Rudnick LLP
Brown Rudnick combines ingenuity with experience to achieve great outcomes for our clients. It delivers partner-driven services; it incentivizes its lawyers to collaborate in the client’s best interest; and it puts excellence before scale, focusing on practices such as distressed debt, corporate restructuring, M&A, white collar defense, international disputes and intellectual property, where it is a recognized leader. It has more than 250 lawyers and government relations professionals across the United States and Europe, with offices in key financial centers. Beyond the United States and Europe, we serve clients in the Middle East, North Africa, the Caribbean and Latin America.
For more information, please contact:
Katie Villiers-Smith, Questor Consulting