TIDMFAN
RNS Number : 7893T
Volution Group plc
06 July 2018
Embargoed until 07:00 on:
6(th) July 2018
Volution Group plc
Acquisition of Oy Pamon Ab
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 Oy Pamon Ab ("Pamon"). Pamon is a leading designer,
manufacturer and supplier of Mechanical Ventilation with Heat
Recovery ("MVHR") products primarily for the Finnish new build and
refurbishment construction markets.
Consideration
The acquisition will be on a debt free, cash free basis for an
initial cash consideration of EUR11.5 million (approximately
GBP10.2 million), to be funded from the Group's existing cash and
banking facilities. A further amount of deferred cash consideration
of up to EUR2.0 million (approximately GBP1.8 million) may be
payable, contingent on Pamon's earnings for the two years ending 30
November 2018 and 2019.
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.
Strategic rationale
The acquisition of Pamon 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.
Volution already supplies to the Finnish ventilation market and
the acquisition expands our presence in to the regulatory driven
MVHR new-build commercial sector in Finland and more generally in
the Nordics by offering high quality, well respected and
established brands.
Pamon's Managing Director (Tatu Hartikainen) and Technical
Director (Pasi Paaso), along with the existing management team,
will remain with the business and report in to Volution's Nordics
management team.
Background to Pamon
Pamon was established in 1994 and sells products under its two
market leading brands, KAIR and Pilpit. Pamon's core competence is
in combining high quality product performance with ease of
installation and efficient, scalable production with a focus on
customer satisfaction and ease of selection. Pamon's products are
installed in both residential and commercial buildings and do not
require extensive assembly during installation.
In the financial year ended 30 November 2017, Pamon generated
revenue of EUR8.2 million (approximately GBP7.2 million). Reported
profit before tax was EUR1.0 million (approximately GBP0.9
million), and gross assets were EUR2.8 million (approximately
GBP2.5 million) as at 30 November 2017. In the financial year ended
30 November 2017 earnings before interest, tax, depreciation and
amortisation (EBITDA) were EUR1.1 million (approximately GBP1.0
million).
Commenting on the acquisition, Ronnie George, Chief Executive
Officer of Volution, said:
"We are delighted to have reached agreement to acquire Pamon.
This acquisition is consistent with our stated strategy of making
selective value adding acquisitions. Pamon has a strong presence in
the Finnish new build ventilation market. The business will be
highly complementary to our position in the Nordics providing us
with an enlarged presence in the new build sector in Finland and
the Nordics, in the growing and regulatory driven market for MVHR
units. We are excited about their potential for continuing growth
and we believe the acquisition will deliver value for our
shareholders."
-Ends-
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
Tulchan Communications +44 (0) 207 353 4200
James Macey White
David Ison
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 14 key brands - Vent-Axia, Manrose,
Diffusion, National Ventilation, Airtech, Breathing Buildings,
Fresh, PAX, VoltAir, Welair, 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.
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are
made in good faith and are based on current expectations or
beliefs, as well as assumptions about future events. You can
sometimes, but not always, identify these statements by the use of
a date in the future or such words as "will", "anticipate",
"estimate", "expect", "project", "intend", "plan", "should", "may",
"assume" and other similar words. By their nature, forward-looking
statements are inherently predictive and speculative and involve
risk and uncertainty because they relate to events and depend on
circumstances that will occur in the future. You should not place
undue reliance on these forward-looking statements, which are not a
guarantee of future performance and are subject to factors that
could cause our actual results to differ materially from those
expressed or implied by these statements. The Company undertakes no
obligation to update any forward-looking statements contained in
this document, whether as a result of new information, future
events or otherwise.
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END
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