REG - Volution Group plc - Acquisitions Announcement

VolutionAnnouncement

20/04/2023 07:00

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RNS Number : 8265W  Volution Group plc  20 April 2023

 

 

 

 

 

 

Thursday 20(th) 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
4(th) 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."

-ends-

 

 

For further information:

 Volution Group plc
 Ronnie George, Chief Executive Officer             +44 (0) 1293 441501
 Andy O'Brien, Chief Financial Officer              +44 (0) 1293 441536

 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
(http://www.volutiongroupplc.com)

 

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