Business
Acquisition of Oy Pamon Ab
Acquisition of Oy Pamon Ab.
About this update from Volution Group Plc
[{"type":"text","content":"\n \nRNS Number : 7893T Volution Group plc 06 July 2018 \n\n \nEmbargoed until 07:00 on: \n6th July 2018\n \nVolution Group plc\n \nAcquisition of Oy Pamon Ab \n \nStrengthens our market position in the Nordics region\n \n \nVolution 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 Oy Pamon Ab (\"Pamon\"). Pamon is a leading designer, manufacturer and supplier of Mechanical Ventilation with Heat Recovery (\"MVHR\") products primarily for the Finnish new build and refurbishment construction markets.\n \nConsideration\n \nThe acquisition will be on a debt free, cash free basis for an initial cash consideration of €11.5 million (approximately £10.2 million), to be funded from the Group's existing cash and banking facilities. A further amount of deferred cash consideration of up to €2.0 million (approximately £1.8 million) may be payable, contingent on Pamon's earnings for the two years ending 30 November 2018 and 2019. \n \nVolution expects the acquisition to be earnings enhancing in the year ending 31 July 2019 and will be reported under Volution's Ventilation Group division. \n \nStrategic rationale\n \nThe acquisition of Pamon 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.\n \nVolution already supplies to the Finnish ventilation market and the acquisition expands our presence in to the regulatory driven MVHR new-build commercial sector in Finland and more generally in the Nordics by offering high quality, well respected and established brands.\n \nPamon's Managing Director (Tatu Hartikainen) and Technical Director (Pasi Paaso), along with the existing management team, will remain with the business and report in to Volution's Nordics management team. \n \nBackground to Pamon\n \nPamon was established in 1994 and sells products under its two market leading brands, KAIR and Pilpit. Pamon's core competence is in combining high quality product performance with ease of installation and efficient, scalable pro...