Business
Acquisition of Ventair Pty Ltd
Acquisition of Ventair Pty Ltd.
About this update from Volution Group Plc
[{"type":"text","content":"\n \nRNS Number : 5176R Volution Group plc 01 March 2019 \n\n \n \nEmbargoed until 07.00 on: \n1 March 2019\n \n \nVolution Group plc\n \nAcquisition of Ventair Pty Limited \n \nStrengthens our market position in the Australasian region\n \n \nVolution 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.\n \nFinancial consideration\n \nThe acquisition was on a debt free, cash free basis for an initial cash consideration of AUS$ 19.2 million (approximately £10.4 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 £4.2 million) may be payable, contingent on Ventair's earnings before interest, tax, depreciation and amortisation (\"EBITDA\") for the year ending 31 July 2020.\n \nIn the financial year ended 30 June 2018, Ventair generated revenue of AUS$ 18.4 million (approximately £10.0 million). Reported profit before tax was AUS$ 2.1 million (approximately £1.1 million), and gross assets were AUS$ 12.0 million (approximately £6.5 million) as at 30 June 2018. In the financial year ended 30 June 2018, EBITDA was AUS$ 2.4 million (approximately £1.3 million) and EBIT was AUS$ 2.3 million (approximately £1.2 million).\n \nVolution expects the acquisition to be earnings enhancing and will be reported under Volution's Ventilation Group division. \n \nStrategic rationale\n \nThe 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...