Embargoed until 07.00 on:
17 July 2018
Volution Group plc
Acquisition of Air Connection ApS
Further 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 Air Connection ApS ("Air Connection"), a leading supplier of branded ventilation products to the Danish market.
Consideration
The acquisition will be on a debt free, cash free basis for an initial cash consideration of DKK23.8 million (approximately £2.8 million), to be funded from the Group's existing cash and banking facilities. A further amount of deferred cash consideration of up to DKK4.2 million (approximately £0.5 million) may be payable, contingent on Air Connection's earnings for the year ending 31 July 2021.
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 Air Connection 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. In particular, this further broadens and strengthens our leading presence in the Nordic region where we have been growing strongly both organically and by acquisition in recent years.
Volution currently has some exposure to the Danish ventilation market and this acquisition provides an opportunity to enlarge our presence by introducing more of the Volution Group product range via an established route to market.
Air Connection's Managing Director, Allan Kristensen, will remain with the business and report in to Volution's Nordics management team.
Background to Air Connection
Air Connection was established in 2004 and is a leading supplier of branded ventilation products to the Danish market, including Volution products. Air Connection's head office and main distribution centre is based in Odder in Denmark with an additional distribution centre in Greve near Copenhagen, Denmark.
The Air Connection business generates pro forma revenue of circa DKK33 million (approximately £4 million).
Commenting on the acquisition, Ronnie George, Chief Executive Officer of Volution, said:
"We are delighted to have reached agreement to acquire Air Connection and look forward to welcoming Allan Kristensen and his team to the Volution Group. This acquisition is consistent with our stated strategy of making selective value adding acquisitions. Since listing, we have now completed 11 acquisitions and are pleased to add Air Connection, which further strengthens our position in the Nordics market. Air Connection provides us with an opportunity to enlarge our presence in the Danish market by introducing additional Volution Group product ranges via an established route to market. 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 16 key brands - Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Fresh, PAX, VoltAir, Welair, Kair, Pilpt, 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.
