REG - Genuit Group PLC - Acquisition of Monodraught

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RNS Number : 3346X  Genuit Group PLC  01 September 2025

 

Genuit Group plc

      Acquisition of Monodraught

Strengthening position in attractive UK ventilation market

 

Genuit Group plc ('Genuit', the 'Company' or the 'Group'), the UK's largest
provider of sustainable water, climate and ventilation solutions for the built
environment, today announces that it has acquired Monodraught Topco Limited
('Monodraught') for a total consideration of £55.6 million on a debt-free and
cash-free basis (the 'Acquisition').

Monodraught is a leading provider of commercial ventilation solutions in the
UK, with advanced controls and data management capability focussed on the UK
education sector. Monodraught delivered 13% organic revenue CAGR between 2021
and 2024 and has a high level of order book coverage underpinning continued
strong revenue growth with an expected 2025 calendar outturn c.£19m.

The consideration has been fully funded via the Group's existing debt
facilities. The Acquisition will form part of the Climate Management Solutions
('CMS') Business Unit.

 

Transaction Highlights

·   Acquisition of a UK market leader in solutions covering the design,
manufacture, commission and maintenance of sustainable ventilation, cooling
and heating solutions for new and refurbished commercial buildings, with a
strong presence in the education sector.

 

·      Highly complementary to the Group's existing ventilation brands,
Nuaire and Domus, with minimal product or market overlap, providing an
opportunity for Genuit to bring commercial scale and market access beyond
Monodraught's core.

 

·      Significantly enhances the Group's capability in service
provision, controls and data management bringing additional innovation
capability to CMS. This accelerates the development of integrated heating and
cooling solutions across the Group's portfolio.

 

·    Monodraught's range of low-carbon heating and cooling technologies is
aligned with Genuit's focus on climate change adaptation and mitigation.

 

·   Underpins the significant growth opportunities across CMS, driven by
environmental and regulatory tailwinds, consistent with the Group's strategic
focus on segments that provide above-market growth rates.

·    As part of Genuit, Monodraught will benefit from the Genuit Business
System, focussing on unlocking synergies, sharing best practice and driving
further efficiency.

 

Financial Highlights

·    Total consideration of £55.6 million on a debt-free and cash-free
basis(1), equivalent to 12x EV/EBITDA(2), based on 2025 full year estimates.

·      Expected to be Earnings Per Share (EPS) accretive in the first
full year of ownership.

·    ROIC is forecasted to be greater than the Group's WACC in the second
full year of ownership, pre-synergies.

·      Post Acquisition, it is expected that 2025 year-end leverage(3)
will be below 1.2x.

 

About Monodraught

Established over fifty years ago and based in High Wycombe, UK, Monodraught
focuses on solutions involving natural and hybrid ventilation. It has a
specific focus on the education sector, where it provides a market leading
proposition. In addition to its high-quality portfolio of products,
Monodraught also provides high levels of technical support and design,
continuing through to commissioning of customers' installations. Post
installation, Monodraught offers advanced controls solutions that provide
customers with performance information ensuring buildings continue to be
managed as designed. Monodraught benefits from a range of regulatory and
policy drivers, such as BB101(4) governing the requirement for fresh air in
schools, alongside the CF25(5) framework for the building and refurbishment of
education buildings in England, as well as a broader growing demand for
cooling and heating using sustainable lower energy technologies.

 

Commenting on the Acquisition, Joe Vorih, Chief Executive Officer, said

"I am delighted to welcome the Monodraught team to Genuit. They bring an
innovative and highly complementary portfolio of ventilation products, as well
as a controls and data management capability that extends our offering and
enables us to integrate heating and cooling solutions from across the Group.
The Acquisition significantly strengthens our position in the attractive UK
ventilation market, which is benefiting from environmental and regulatory
tailwinds. This is evident both in the strong growth of Monodraught in recent
years alongside the demand for our existing portfolio of ventilation and low
carbon heating and cooling products. We expect this to continue and are
excited about the opportunities ahead."

 

Notes:

1.          Based on locked-box accounts at 31 March 2025

2.          Underlying EBITDA is operating profit from continuing
operations before exceptional items, intangibles, amortisation and
depreciation

3.          Leverage is defined as net debt divided by pro-forma
EBITDA

4.        BB101 - Building Bulletin 101 helps ensure compliance with
Building Regulations, including Approved Document F (Ventilation) and Approved
Document L (Energy Efficiency) for Education Buildings

5.          CF25 - The Construction Framework 25 is the Department of
Education plan for construction and refurbishment of education buildings in
England, running for six years from January 2026

 

 

Enquiries:

Genuit Group plc:

Joe Vorih, Chief Executive Officer

Tim Pullen, Chief Financial Officer

+44 (0) 1138 315315

 

Headland Consultancy:

 Matt Denham      Telephone: + 44 (0)20 3805 4822
 Chloe Francklin  Email: genuit@headlandconsultancy.com (mailto:genuit@headlandconsultancy.com)

Notes to Editors:

About Genuit Group plc

Genuit Group plc is the UK's largest provider of sustainable water, climate
and ventilation solutions for the built environment. Genuit's solutions allow
customers to mitigate and adapt to the effects of climate change and meet
evolving sustainability regulations and targets.

 

The Group is divided into three Business Units, each of which addresses
specific challenges in the built

environment:

 

·       Climate Management Solutions - Addressing the drivers for low
carbon heating and cooling, and clean and healthy air ventilation.

·       Water Management Solutions - Driving climate adaptation and
resilience through integrated surface and drainage solutions.

·     Sustainable Building Solutions - Providing a range of construction
solutions to reduce the carbon content of the built environment.

 

Across these Business Units, Genuit's brands are some of the most
well-established and innovative in the industry, including Polypipe, Nuaire
and Adey.

 

The Group primarily serves the UK and European building and construction
markets with a presence in Italy and the Netherlands and sells to specific
niches in the rest of the world.

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