Last checked at 20 Apr 2023 07:00
Thursday 20th April 2023
Volution Group plc
Volution enters new European markets with two acquisitions for initial c.€35m
Volution Group plc ("Volution" or the "Group"), a leading international designer and manufacturer of energy efficient indoor air quality solutions, is pleased to announce that it has signed an agreement to acquire I-Vent d.o.o ("I-Vent") in Slovenia and Croatia, and has completed the acquisition of Ventilairsec SA ("Ventilairsec") in France.
Both acquisitions will be earnings enhancing and will report as part of Volution Group's Continental Europe sector. Consideration is being funded from existing cash resources and the Group's Sustainability Linked Revolving Credit Facility.
I-Vent
The Group has signed an agreement to acquire 100% of I-Vent for an initial consideration of €25.2 million on a debt free cash free basis, with further contingent consideration of up to €15 million based on stretching growth targets for the financial results for the three years up to and including 31 December 2025. For the financial year ended 31 December 2022, I-Vent reported unaudited revenue of approximately €10 million and profit before tax of approximately €3.4 million, with gross assets of €4.7 million.
I-Vent designs, manufactures and supplies residential ventilation systems, primarily focused on decentralised heat recovery. The company, which has 20 full time employees, supplies to residential customers in Slovenia and Croatia. The Managing Director, founder and former 100% shareholder, Milan Kuster, will continue to lead the business post acquisition.
Completion of the transaction is conditional on approval of the FDI (Foreign Direct Investment) authority in Slovenia, which is expected to take up to two months.
Ventilairsec
The Group has acquired 100% of Ventilairsec for an initial consideration of €10 million on a debt free cash free basis, with further contingent consideration of up to €5 million based on delivery of strong earnings growth for the year ending 31 December 2023. The acquisition was completed on 4th April 2023.
Ventilairsec, based in Nantes, France, designs and manufactures a range of residential ventilation systems focused on a low carbon positive input ventilation technology known as "VMI". The acquisition provides Volution with direct access to the French market, one of the largest ventilation markets in Europe, and with our market leading range of residential ventilation solutions we are excited about the future opportunities this acquisition provides the Group. Unaudited revenue for the year ended 31 December 2022 was €8.2 million, with a profit before tax of approximately €0.8 million.
Ronnie George, Volution Chief Executive Officer, commented:
"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."
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For further information:
Volution Group plc |
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Ronnie George, Chief Executive Officer | +44 (0) 1293 441501 |
Andy O'Brien, Chief Financial Officer | +44 (0) 1293 441536 |
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FTI Consulting | +44 (0) 203 727 1340 |
Richard Mountain | |
Susanne Yule |
This announcement includes inside information (as defined by Article 7 of the Market Abuse Regulation (EU) No 596/2014, as it forms part of the UK domestic laws by virtue of the European Union (Withdrawal) Act 2018). Upon publication of this announcement, this information is now considered to be in the public domain. The person responsible for arranging the release of this announcement on behalf of Volution is Fiona Smith, Company Secretary.
Volution Group plc Legal Entity Identifier: 213800EPT84EQCDHO768.
Note to Editors:
Volution Group plc (LSE: FAN) is a leading international designer and manufacturer of energy efficient indoor air quality solutions. Volution Group comprises 19 key brands across three regions:
UK: Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Torin-Sifan.
Continental Europe: Fresh, PAX, VoltAir, Kair, Air Connection, Rtek, inVENTer, Ventilair, ClimaRad, ERI Corporation.
Australasia: Simx, Ventair, Manrose.
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.