TIDMFAN
RNS Number : 5176R
Volution Group plc
01 March 2019
Embargoed until 07.00 on:
1 March 2019
Volution Group plc
Acquisition of Ventair Pty Limited
Strengthens our market position in the Australasian region
Volution Group plc ("Volution" or "Volution Group", LSE: FAN), a
leading supplier of ventilation products to the residential and
commercial construction markets, is pleased to announce that it has
acquired Ventair Pty Limited ("Ventair"), a leading specialist
supplier of high quality, air movement products to the Australian
residential ventilation market. Ventair's head office is in
Melbourne, Australia and it has warehouses in Melbourne, Brisbane
and Perth. Ventair sells to electrical wholesalers and retail
distribution partners who together have over 2,000 outlets
nationally.
Financial consideration
The acquisition was on a debt free, cash free basis for an
initial cash consideration of AUS$ 19.2 million (approximately
GBP10.4 million), funded from Volution's existing cash and banking
facilities. A further amount of deferred cash consideration of up
to AUS$ 7.7 million (approximately GBP4.2 million) may be payable,
contingent on Ventair's earnings before interest, tax, depreciation
and amortisation ("EBITDA") for the year ending 31 July 2020.
In the financial year ended 30 June 2018, Ventair generated
revenue of AUS$ 18.4 million (approximately GBP10.0 million).
Reported profit before tax was AUS$ 2.1 million (approximately
GBP1.1 million), and gross assets were AUS$ 12.0 million
(approximately GBP6.5 million) as at 30 June 2018. In the financial
year ended 30 June 2018, EBITDA was AUS$ 2.4 million (approximately
GBP1.3 million) and EBIT was AUS$ 2.3 million (approximately GBP1.2
million).
Volution expects the acquisition to be earnings enhancing and
will be reported under Volution's Ventilation Group division.
Strategic rationale
The acquisition of Ventair is in-line with Volution'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. The integration of Ventair into the Volution
Group will provide an opportunity for further growth in the
Australasian region and the combination of its product portfolio
with that of Simx (New Zealand) will enable us to enhance our offer
in both the Australian and New Zealand markets.
The Managing Director, Gary Purcell, who founded Ventair 12
years ago, will lead the business in Australia and report to Ian
Borley, Managing Director, Australasia. The combination of Gary
Purcell's knowledge and experience, supported by the strong
existing operational management team, creates the right management
platform to underpin our ambitious plans for the business.
Commenting on the acquisition, Ronnie George, Chief Executive
Officer of Volution, said:
"We are delighted to have acquired Ventair and look forward to
welcoming Gary Purcell and his team to the Volution Group. This
acquisition is consistent with our stated strategy of making
selective value-adding acquisitions and we are excited about the
opportunity to enlarge our presence in the Australasian region by
introducing additional Volution Group product ranges via
established routes to market. The range of Ventair products,
coupled with the existing Volution product range, provides us with
an attractive and improved portfolio for both the Australian and
New Zealand 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.
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 comprises 16 key brands - Vent-Axia, Manrose,
Diffusion, National Ventilation, Airtech, Breathing Buildings,
Fresh, PAX, VoltAir, Welair, Kair, Air Connection, inVENTer,
Ventilair, Simx and Ventair, 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. 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.
This information is provided by RNS, the news service of the
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END
ACQPGUWWPUPBPGR
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