TIDMFAN
RNS Number : 0903J
Volution Group plc
18 December 2020
Embargoed until 07:00
Friday 18 December 2020
Volution Group plc
Acquisition of ClimaRad
Market leader for decentralised ventilation systems in the
Netherlands
Volution Group plc ("Volution" or "the Group" or "the Company",
LSE: FAN), a leading international designer and manufacturer of
energy efficient indoor air quality solutions, is pleased to
announce that it has acquired 75% of the issued share capital of
ClimaRad BV ("ClimaRad"), the market leader for decentralised
ventilation systems in the Netherlands.
Acquisition terms
The acquisition of 75% of ClimaRad will be for a cash
consideration of EUR42 million on a debt free cash free basis
(approximately GBP38 million), to be funded from the Group's
existing cash and its recently announced GBP150 million
Sustainability Linked Revolving Credit Facility.
Volution will then acquire the balance 25% of ClimaRad held by
the co-founder, Peter Schabos, and four of the current directors
and management team of ClimaRad (Clemens Veldhof, Rutger Vasters,
Ralph Liedenbaum and Bas Verbeek) on or before 28 February 2025.
The 25% purchase in 2025 will be for an additional cash
consideration equal to 25% of a multiple of 13 times the EBITDA of
ClimaRad for the financial year ending 31 December 2024, and is
subject to a cap. Peter Schabos will continue to act as an adviser
post completion and the current directors and management team of
ClimaRad will also remain with the business.
The acquisition is expected to be earnings accretive for the
Group.
Background to ClimaRad
Founded in 2005 and headquartered in Oldenzaal, Netherlands,
ClimaRad has become the market leader for decentralised heat
recovery ventilation in the Netherlands. The company designs and
manufactures innovative heat recovery ventilation systems, many
incorporating filtering, heating and comfort cooling capability,
primarily to the residential and care home sectors with further
presence in the office and education sectors. Its products are
manufactured in its own scalable, low cost and efficient production
facility in Sarajevo, Bosnia-Herzegovina.
For the financial year ended 31 December 2019, ClimaRad
generated revenues of EUR8.7 million and profit before tax of
EUR2.5 million, with gross assets of EUR7.1 million. For the year
ending 31 December 2020, ClimaRad is expected to grow revenues to
approximately EUR12 million with margins increasing significantly
in the year benefitting from operational leverage.
Structural and regulatory market drivers
There are a number of structural and regulatory trends which
Volution is well placed to capitalise upon. For the Group both the
European Green Deal Renovation Wave funding and the UK Green
Industrial Revolution plan, focus on "building back better" with
key principles to improve air quality and decarbonisation of
heating and cooling in refurbishment.
In addition, favourable European Building Regulations continue
to define low carbon ventilation solutions in new build where
decentralised approaches provide advantages for a wide number of
applications in the Netherlands and beyond. This acquisition will
further strengthen Volution's capability to capitalise upon the
growth opportunities supported by these trends.
Strategic Rationale
The acquisition of ClimaRad is in line with the Group's strategy
to grow by selectively acquiring value-adding businesses in new
markets and geographies across the residential ventilation market
and, where appropriate, in the commercial ventilation market.
With the ClimaRad proposition integrating ventilation and heat
emitters, they complement the existing Volution portfolio of
mechanical ventilation with heat recovery and fan coils. Against
the backdrop of additional legislation, extending the Group's
decentralised product range provides additional opportunity for
growth across its European and UK sales channels.
Ronnie George, Volution Chief Executive Officer, commented:
"We are delighted to welcome ClimaRad to the Volution Group.
Their innovative decentralised approach has delivered significant
revenue growth and margin expansion in the last couple of years and
we are excited about the direction of travel. Establishing an all
in one integrated product range including both heat recovery
ventilation and heat emittances ready to link to low carbon heat
sources, offers growth opportunities in both new build and
refurbishment applications in a number of Volution's key
markets."
-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
+44 (0) 207 353
Tulchan Communications 4200
James Macey White
David Allchurch
Giles Kernick
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.
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 16 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,
inVENTer, Ventilair, ClimaRad.
Australasia: Simx, Ventair.
For more information, please go to: www.volutiongroupplc.com
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