Embargoed until 07:00 on:
6th July 2018
Volution Group plc
Acquisition of Oy Pamon 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, is pleased to announce that it has acquired Oy Pamon Ab ("Pamon"). Pamon is a leading designer, manufacturer and supplier of Mechanical Ventilation with Heat Recovery ("MVHR") products primarily for the Finnish new build and refurbishment construction markets.
Consideration
The acquisition will be on a debt free, cash free basis for an initial cash consideration of €11.5 million (approximately £10.2 million), to be funded from the Group's existing cash and banking facilities. A further amount of deferred cash consideration of up to €2.0 million (approximately £1.8 million) may be payable, contingent on Pamon's earnings for the two years ending 30 November 2018 and 2019.
Volution expects the acquisition to be earnings enhancing in the year ending 31 July 2019 and will be reported under Volution's Ventilation Group division.
Strategic rationale
The acquisition of Pamon is in line with the Group's strategy to grow by selectively acquiring value-adding businesses in new and existing markets and geographies across the residential ventilation market and, where appropriate, in the commercial ventilation market.
Volution already supplies to the Finnish ventilation market and the acquisition expands our presence in to the regulatory driven MVHR new-build commercial sector in Finland and more generally in the Nordics by offering high quality, well respected and established brands.
Pamon's Managing Director (Tatu Hartikainen) and Technical Director (Pasi Paaso), along with the existing management team, will remain with the business and report in to Volution's Nordics management team.
Background to Pamon
Pamon was established in 1994 and sells products under its two market leading brands, KAIR and Pilpit. Pamon's core competence is in combining high quality product performance with ease of installation and efficient, scalable production with a focus on customer satisfaction and ease of selection. Pamon's products are installed in both residential and commercial buildings and do not require extensive assembly during installation.
In the financial year ended 30 November 2017, Pamon generated revenue of €8.2 million (approximately £7.2 million). Reported profit before tax was €1.0 million (approximately £0.9 million), and gross assets were €2.8 million (approximately £2.5 million) as at 30 November 2017. In the financial year ended 30 November 2017 earnings before interest, tax, depreciation and amortisation (EBITDA) were €1.1 million (approximately £1.0 million).
Commenting on the acquisition, Ronnie George, Chief Executive Officer of Volution, said:
"We are delighted to have reached agreement to acquire Pamon. This acquisition is consistent with our stated strategy of making selective value adding acquisitions. Pamon has a strong presence in the Finnish new build ventilation market. The business will be highly complementary to our position in the Nordics providing us with an enlarged presence in the new build sector in Finland and the Nordics, in the growing and regulatory driven market for MVHR units. We are excited about their potential for continuing growth and we believe the acquisition will deliver value for our shareholders."
-Ends-
For further information please contact:
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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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David Ison |
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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. The person responsible for arranging the release of this announcement on behalf of Volution is Ian Dew, Chief Financial Officer.
Legal Entity Identifier: 213800EPT84EQCDHO768.
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, Central Europe and Australasia.
The Volution Group operates through two divisions: the Ventilation Group and the OEM (Torin-Sifan) division. The Ventilation Group consists of 14 key brands - Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Fresh, PAX, VoltAir, Welair, inVENTer, Brüggemann, Ventilair and Simx focused primarily on the UK, the Nordic, Central European and Australasian 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.
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.
