Volution Group PLC on Friday announced it has signed an agreement to acquire the Fantech Group of companies from the owners of UK-based Elta Group Ltd.
Volution Group is a Crawley, England-based energy-efficient indoor air quality solutions firm. Fantech is an Australia and New Zealand-based commercial and residential ventilation services provider, including the Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire and Burra Steel brands.
Volution will acquire 100% of the holding company of Fantech for an initial consideration of A$220 million, or £112.9 million, with a further non-contingent consideration of A$60 million, or £30.8 million, payable twelve months after the completion date.
In the year ended March 31, Fantech reported annual revenue of A$177.0 million, or £90.8 million, and earnings before interest, taxation, depreciation and amortisation of A$33.3 million, or £17.1 million.
After the transaction has completed, Australasia will represent more than 30% of Volution’s revenue. Fantech will be earnings accretive for Volution immediately upon completion, with the group maintaining its adjusted operating margin above a long-term target of 20%.
The acquisition comes shortly after Volution completed the refinancing of its previous revolving credit facility, the proceeds from which will be used to finance the transaction. The facility included a new £230 million sustainability linked revolving credit facility and £70 million uncommitted accordion facility, with an initial term of three years until September 2027 and options to extend for two further years.
Chief Executive Officer Ronnie George said: ‘This acquisition, our largest to date, gives Volution a great platform to continue our growth in Australasia. We are excited by the opportunities available to us through owning such a well-respected group of brands. Fantech complements our existing local market positions in Ventair, Simx and DVS Proven Systems very well.
‘I would like to welcome our 350 Fantech colleagues to Volution and I look forward to working closely with them once the acquisition completes. The combination of Fantech’s strong and longstanding trading in the region with greater access to Volution’s wide product portfolio gives us an enviable platform for growth.
Shares in Volution were up 6.4% at 589.50 pence each in London on Friday morning.
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