Business
Acquisition of Simx Limited
Acquisition of Simx Limited.
About this update from Volution Group Plc
[{"type":"text","content":"\n \nRNS Number : 0618I Volution Group plc 19 March 2018 \n\n \nEmbargoed until 07.00 on: \nMonday 19 March 2018\n \nVolution Group plc\n \nAcquisition of Simx Limited \n \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 Simx Limited (\"Simx\") for an all cash consideration of NZ$72.0 million (approximately £37.8 million). Simx is the leading designer, manufacturer and supplier of primarily residential ventilation products to the New Zealand heating, ventilation and air-conditioning market. It is headquartered in Auckland, New Zealand, with an additional distribution centre in Christchurch, New Zealand.\n \nStrategic and Financial Overview\n \nSimx was established in 1983 and has been a customer of Volution for over 20 years. It has developed into the leading residential ventilation product provider in the New Zealand market and we are excited about integrating the company into the Group and further developing its product portfolio. A significant part of Simx's revenue in the financial year ended 30 June 2017 was third party sourced fans sold under the Group's Manrose brand. Simx also sells a number of its own market leading brands including SmartVent, Heat Trans and Simx.\n \nThe acquisition of Simx 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. \n \nThe acquisition was on a debt free, cash free basis for an all cash consideration of NZ$72.0 million (approximately £37.8 million), funded from the Group's existing cash and banking facilities. During the financial year ended 30 June 2017, Simx generated revenue of NZ$36.6 million (approximately £19.2 million). Reported profit before tax was NZ$4.6 million (approximately £2.4 million) and reported profit before interest and tax was NZ$6.1 million (approximately £3.2 million). Simx's gross assets were NZ$25.3 million (approximately £13.3 million) as at 30 June 2017.\n \nVolution expects the acquisition to be immediately earnings enhancing in the year ending 31 July 2018 and will...