VictoriaWhitestoneCarpets and flooring manufacturer and distributor Victoria has agreed to buy the Whitestone Weavers group from its private shareholders in a deal worth up to £14m.

The acquisition — which besides Whitestone includes the Carpet Line Direct, Thomas Witter and Gaskell Mackay Carpets businesses — is the third major deal in a year following Victoria’s earlier moves for Westex and Abingdon.

It will pay £5.7m upfront for the Hartlepool based group with further deferred payments of £2.3m in March, £1.7m in April 2016 and a final payment of £2.5m in June 2018.

It also pay existing shareholders £1.5m if profit targets are achieved over the next three years, with key management to remain both in place and as stockholders thank to a new rights issue in Victoria.

The annualised turnover of the enlarged Victoria group will be more than £200m, operating from six manufacturing sites in the UK and two in Australia.  

Whitestone employs more than 100 people at its North East base and generated pre-tax profits of £1.7m on sales of £33.9m in the year to end June 2014.