Acquisition of Air Connection ApS
Further strengthens our market position in the Nordics region
Volution 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 Air Connection ApS (“Air Connection”), a leading supplier of branded ventilation products to the Danish market.
The acquisition will be on a debt free, cash free basis for an initial cash consideration of DKK23.8 million (approximately £2.8 million), to be funded from the Group’s existing cash and banking facilities. A further amount of deferred cash consideration of up to DKK4.2 million (approximately £0.5 million) may be payable, contingent on Air Connection’s earnings for the year ending 31 July 2021.
Volution expects the acquisition to be earnings enhancing in the year ending 31 July 2019 and will be reported under Volution’s Ventilation Group division.
The acquisition of Air Connection 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. In particular, this further broadens and strengthens our leading presence in the Nordic region where we have been growing strongly both organically and by acquisition in recent years.
Volution currently has some exposure to the Danish ventilation market and this acquisition provides an opportunity to enlarge our presence by introducing more of the Volution Group product range via an established route to market.
Air Connection’s Managing Director, Allan Kristensen, will remain with the business and report in to Volution’s Nordics management team.
Background to Air Connection
Air Connection was established in 2004 and is a leading supplier of branded ventilation products to the Danish market, including Volution products. Air Connection’s head office and main distribution centre is based in Odder in Denmark with an additional distribution centre in Greve near Copenhagen, Denmark.
The Air Connection business generates pro forma revenue of circa DKK33 million (approximately £4 million).
Commenting on the acquisition, Ronnie George, Chief Executive Officer of Volution, said:
“We are delighted to have reached agreement to acquire Air Connection and look forward to welcoming Allan Kristensen and his team to the Volution Group. This acquisition is consistent with our stated strategy of making selective value adding acquisitions. Since listing, we have now completed 11 acquisitions and are pleased to add Air Connection, which further strengthens our position in the Nordics market. Air Connection provides us with an opportunity to enlarge our presence in the Danish market by introducing additional Volution Group product ranges via an established route to market. We believe the acquisition will deliver value for our shareholders.”
For further information please contact:
Volution Group plc
Ronnie George, Chief Executive Officer
+44 (0) 1293 441501
Ian Dew, Chief Financial Officer
+44 (0) 1293 441536
James Macey White
+44 (0) 207 353 4200
Certain information contained in this announcement would have constituted inside information (as defined by Article 7 of Regulation (EU) No. 596/2014) prior to its release as part of this announcement. The person responsible for arranging the release of this announcement on behalf of Volution is Ian Dew, Chief Financial Officer.
Legal Entity Identifier: 213800EPT84EQCDHO768.
Note to Editors:
Volution Group plc (LSE: FAN) is a leading supplier of ventilation products to the residential and commercial construction markets in the UK, the Nordics, Central Europe and Australasia.
The Volution Group operates through two divisions: the Ventilation Group and the OEM (Torin-Sifan) division. The Ventilation Group consists of 16 key brands - Vent-Axia, Manrose, Diffusion, National Ventilation, Airtech, Breathing Buildings, Fresh, PAX, VoltAir, Welair, Kair, Pilpt, inVENTer, Brüggemann, Ventilair and Simx focused primarily on the UK, the Nordic, Central European and Australasian ventilation markets. The Ventilation Group principally supplies ventilation products for residential and commercial ventilation applications. The OEM (Torin-Sifan) division supplies motors, fans and blowers to OEMs of heating and ventilation products for both residential and commercial construction applications in Europe.
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