Embargoed until 07.00 on:
Tuesday, 30 May 2017
Volution Group plc
Acquisition of VoltAir System AB
Strengthens our market position in the Nordics region
Volution Group plc ("Volution" or "the Group", LSE: FAN), a leading supplier of ventilation products to the residential and commercial construction markets, today announces that it has completed the acquisition of VoltAir System AB ("VoltAir").
Financial consideration
The acquisition will be on a debt free, cash free basis for an initial cash consideration of SEK 79.7 million (approximately £7.0 million), to be funded from the Group's existing cash and banking facilities. A further amount of deferred cash consideration of up to SEK 28 million (approximately £2.5 million) may be payable, contingent on VoltAir's earnings for the year ended 31 December 2017.
Background to VoltAir
Based in Torsby, Sweden, VoltAir is a leading manufacturer and supplier of centralised heat recovery ventilation systems for residential and commercial purposes, in primarily the new build sector. It develops, manufactures and sells energy efficient air handling units ("AHUs") based on proprietary technology and sold under its own brand. It provides both prefabricated and on-site built AHUs with a reputation for high energy efficiency, low maintenance costs and long service life.
In the year ended 31 December 2016, VoltAir generated revenue of SEK 74.5 million (approximately £6.5 million) assisted by a significant and prestigious project for the head office of a large Swedish bank in Stockholm, which will not repeat. The profit before tax was SEK 13.8 million (approximately £1.2 million) and gross assets were SEK 31.5 million (approximately £2.8 million).
Volution expects the acquisition to be immediately earnings enhancing, and will be reported under Volution's Ventilation Group division.
Commenting on the acquisition, Ronnie George, Chief Executive Officer of Volution, said:
"We are delighted to have reached agreement to acquire VoltAir. This acquisition is consistent with our stated strategy of making selective value enhancing acquisitions. VoltAir has a strong presence in the residential and commercial new build ventilation markets in Sweden and the wider Nordics in the growing market for energy efficient air handling units. The business will be highly complementary to our strong position in the Nordic residential refurbishment ventilation products market and we believe the acquisition will deliver value for our shareholders."
-Ends-
For further information:
Enquiries: |
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Volution Group plc |
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Ronnie George, Chief Executive Officer |
+44 (0) 1293 441501 |
Ian Dew, Chief Financial Officer |
+44 (0) 1293 441536 |
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Tulchan Communications |
+44 (0) 207 353 4200 |
James Macey White |
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Matt Low |
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Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No. 596/2014) prior to its release as part of this announcement.
Note to Editors:
Volution Group plc (LSE: FAN) is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics and Central Europe.
The Volution Group operates through two divisions: the Ventilation Group and the OEM (Torin-Sifan) division. The Ventilation Group consists of 12 key brands - Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Fresh, PAX, Welair, inVENTer, Brüggemann and Ventilair, focused primarily on the UK, the Nordic and Central European ventilation markets. The Ventilation Group principally supplies ventilation products for residential and commercial ventilation applications. The OEM (Torin-Sifan) division supplies motors, fans and blowers to OEMs of heating and ventilation products for both residential and commercial construction applications in Europe.
For more information, please go to: www.volutiongroupplc.com
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.
