TIDMFAN
RNS Number : 8102U
Volution Group plc
17 July 2018
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 GBP2.8
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 GBP0.5 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 GBP4 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:
Volution Group plc
Ronnie George, Chief Executive Officer +44 (0) 1293 441501
Ian Dew, Chief Financial Officer +44 (0) 1293 441536
Tulchan Communications +44 (0) 207 353 4200
James Macey White
David Ison
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.
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END
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