Business
Acquisition of VoltAir System AB
Acquisition of VoltAir System AB.
About this update from Volution Group Plc
[{"type":"text","content":"\n \nRNS Number : 4299G Volution Group plc 30 May 2017 \n\n \n \nEmbargoed until 07.00 on: \nTuesday, 30 May 2017\n \n \nVolution Group plc\n \nAcquisition of VoltAir System 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, today announces that it has completed the acquisition of VoltAir System AB (\"VoltAir\"). \n \nFinancial consideration\n \nThe acquisition will be on a debt free, cash free basis for an initial cash consideration of SEK 79.7 million (approximately £7.0 million), to be funded from the Group's existing cash and banking facilities. A further amount of deferred cash consideration of up to SEK 28 million (approximately £2.5 million) may be payable, contingent on VoltAir's earnings for the year ended 31 December 2017.\n \nBackground to VoltAir \n \nBased in Torsby, Sweden, VoltAir is a leading manufacturer and supplier of centralised heat recovery ventilation systems for residential and commercial purposes, in primarily the new build sector. It develops, manufactures and sells energy efficient air handling units (\"AHUs\") based on proprietary technology and sold under its own brand. It provides both prefabricated and on-site built AHUs with a reputation for high energy efficiency, low maintenance costs and long service life. \n \nIn the year ended 31 December 2016, VoltAir generated revenue of SEK 74.5 million (approximately £6.5 million) assisted by a significant and prestigious project for the head office of a large Swedish bank in Stockholm, which will not repeat. The profit before tax was SEK 13.8 million (approximately £1.2 million) and gross assets were SEK 31.5 million (approximately £2.8 million).\n \nVolution expects the acquisition to be immediately earnings enhancing, and will be reported under Volution's Ventilation Group division.\n \nCommenting on the acquisition, Ronnie George, Chief Executive Officer of Volution, said:\n\"We are delighted to have reached agreement to acquire VoltAir. This acquisition is consistent with our stated strategy of making selective value enhancing acquisitions. VoltAir has a strong presence in the residential and com...