(Alliance News) - Volution Group PLC on Thursday celebrated its strengthened presence in European markets, after signing two acquisition deals in Slovenia, Croatia, and France.
Volution is a West Sussex, England-based international designer and manufacturer of energy efficient indoor air quality solutions.
The first acquisition deal is for I-Vent, a designer, manufacturer and supplier of residential ventilation systems, which supplies to residential customers in Slovenia and Croatia.
Under the terms of the agreement, Volution will acquire I-Vent for an initial consideration of EUR25.2 million on a debt free cash basis, with further contingent consideration of up to EUR15 million based on stretching growth targets for the financial years up to and including December 31, 2025.
For financial 2022, I-Vent reported revenue of EUR10 million and pretax profit of EUR3.4 million, with gross assets of EUR4.7 million.
The transaction is conditional on approval from the Foreign Direct Investment authority in Slovenia, which is expected to take up to two months.
Volution has also acquired Ventilairsec, a Nantes, France-based company which similarly designs and manufactures residential ventilation systems.
The acquisition is for an initial consideration of EUR10 million on a debt free cash free basis, with further contingent consideration of up to EUR5 million based on strong earnings growth for financial 2023.
The group reported unaudited revenue for financial 2022 of EUR8.2 million, with pretax profit of EUR800,000.
"Acquisition of strong local brands with attractive market positions is a key tenet of Volution's growth strategy, and we are delighted to announce these two exciting transactions. We look forward to welcoming our new colleagues in I-Vent and Ventilairsec to the group. Both acquisitions give the group access to significant new markets and bring with them innovative Low Carbon product solutions which further enrich our group's expansive product portfolio," said Volution Chief Executive Officer Ronnie George.
Volution shares were trading 1.9% higher at 422.00 pence each in London on Thursday morning.
By Holly Beveridge, Alliance News reporter
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Volution Group PLS (FAN)