Volution Group plc Acquisition completion (3351L)
September 10 2021 - 2:00AM
UK Regulatory
TIDMFAN
RNS Number : 3351L
Volution Group plc
10 September 2021
Friday 10 September 2021
Volution Group plc
Completion of Acquisition of Energy Recovery Industries
Volution Group plc ("the Group", LSE: FAN), a leading
international designer and manufacturer of energy efficient indoor
air quality solutions, is pleased to confirm that further to the
announcement on 2 August 2021 it has now successfully completed the
acquisition of Energy Recovery Industries(1) ("ERI"), a leading
manufacturer and supplier of low-carbon, energy efficient heat
exchanger cells. The initial consideration for the acquisition was
EUR23.4 million on a debt free cash free basis, with a further
contingent cash consideration of up to EUR12.4 million based on
stretching targets for the financial results for the year ending 31
December 2023.
The transaction has been funded from existing cash and the
Group's Sustainability Linked Revolving Credit Facility. For the
financial year ended 31 December 2020, ERI generated revenue of
EUR11.3 million and profit before tax of EUR2.0m, with gross assets
of EUR7.6m. Revenue is growing at double digit rates in calendar
year 2021 and the acquisition is expected to be immediately
earnings accretive for the Group.
A comprehensive and pre-existing expansion plan is in progress
which will include the acquisition of adjacent land, extension of
the factory and further investment in machinery and automation, to
support ERI's growth ambitions. Sales and distribution entities in
Italy, Spain and the U.K. also form part of the transaction, and
the founding major shareholder Umberto Fiorentini and his senior
management team will remain with the business and continue to lead
it post completion.
(1) Acquisition encompasses 100% of ERI Corporation DOO Bitola
(North Macedonia), 100% of ERI Corporation S.R.L. (Italy), 100% of
Energy Recovery Industries Trading SLU (Spain) and 51% of Energy
Recovery Industries Corporation Ltd (UK).
-ends-
For further information:
Volution Group plc
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Ronnie George, Chief Executive
Officer +44 (0) 1293 441501
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Andy O'Brien, Chief Financial
Officer +44 (0) 1293 441536
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Tulchan Communications +44 (0) 207 353 4200
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James Macey White
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Victoria Boxall
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Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014 as amended by The Market Abuse
(Amendment) (EU Exit) Regulations 2019) prior to its release as
part of this announcement.
Volution Group plc Legal Entity Identifier:
213800EPT84EQCDHO768.
Note to Editors:
Volution Group plc (LSE: FAN) is a leading international
designer and manufacturer of energy efficient indoor air quality
solutions. Volution Group comprises 19 key brands across three
regions:
UK: Vent-Axia, Manrose, Diffusion, National Ventilation,
Airtech, Breathing Buildings, Torin-Sifan.
Continental Europe: Fresh, PAX, VoltAir, Kair, Air Connection,
Rtek, inVENTer, Ventilair, ClimaRad, ERI Corporation.
Australasia: Simx, Ventair, Manrose.
For more information, please go to: www.volutiongroupplc.com
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END
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