ClimaRad acquisition

Complementing our existing low‑carbon portfolio

Background to ClimaRad

Founded in 2005 and headquartered in Oldenzaal, the Netherlands, ClimaRad has become the market leader for decentralised heat recovery ventilation in the Netherlands. The Company designs and manufactures innovative heat recovery ventilation systems, many incorporating filtering, heating and comfort cooling capability, primarily to the residential and care home sectors with further presence in the office and education sectors. Its products are manufactured in its own scalable, low-cost and efficient production facility in Sarajevo, Bosnia and Herzegovina.

Structural and regulatory market drivers

There are a number of structural and regulatory trends which Volution is well placed to capitalise upon. The European Climate Law announcement on 14 July 2021, which detailed the Energy Efficiency Directive, and Fit for 55, supporting the European Green Deal Renovation Wave funding and the UK Green Industrial Revolution Plan, both support a reduction in emissions from buildings. These focus on “building back better” with key principles to improve air quality and the decarbonisation of heating and cooling in refurbishment.

In addition, favourable European building regulations continue to define low-carbon ventilation solutions in new build where decentralised approaches provide advantages for a wide number of applications in the Netherlands and beyond. This acquisition will further strengthen Volution’s capability to capitalise upon the growth opportunities supported by these trends.

"We are delighted to welcome ClimaRad to the Volution Group. Its innovative decentralised approach has delivered significant revenue growth and margin expansion in the last couple of years and we are excited about the direction of travel."

Ronnie George, Volution Chief Executive Officer

Strategic rationale

The acquisition of ClimaRad 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. With the ClimaRad proposition integrating ventilation and heat emitters, it complements the existing Volution portfolio of mechanical ventilation with heat recovery and fan coils. Against the backdrop of additional legislation, extending the Group’s decentralised product range provides additional opportunity for growth across its European and UK sales channels.

"Establishing an all-in-one integrated product range, including both heat recovery ventilation and heat emitters ready to link to low-carbon heat sources, offers growth opportunities in both new build and refurbishment applications in a number of Volution’s key markets."

Ronnie George, Volution Chief Executive Officer

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