TIDMFAN
RNS Number : 0618I
Volution Group plc
19 March 2018
Embargoed until 07.00 on:
Monday 19 March 2018
Volution Group plc
Acquisition of Simx Limited
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 Simx Limited ("Simx") for an all cash consideration of
NZ$72.0 million (approximately GBP37.8 million). Simx is the
leading designer, manufacturer and supplier of primarily
residential ventilation products to the New Zealand heating,
ventilation and air-conditioning market. It is headquartered in
Auckland, New Zealand, with an additional distribution centre in
Christchurch, New Zealand.
Strategic and Financial Overview
Simx was established in 1983 and has been a customer of Volution
for over 20 years. It has developed into the leading residential
ventilation product provider in the New Zealand market and we are
excited about integrating the company into the Group and further
developing its product portfolio. A significant part of Simx's
revenue in the financial year ended 30 June 2017 was third party
sourced fans sold under the Group's Manrose brand. Simx also sells
a number of its own market leading brands including SmartVent, Heat
Trans and Simx.
The acquisition of Simx 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.
The acquisition was on a debt free, cash free basis for an all
cash consideration of NZ$72.0 million (approximately GBP37.8
million), funded from the Group's existing cash and banking
facilities. During the financial year ended 30 June 2017, Simx
generated revenue of NZ$36.6 million (approximately GBP19.2
million). Reported profit before tax was NZ$4.6 million
(approximately GBP2.4 million) and reported profit before interest
and tax was NZ$6.1 million (approximately GBP3.2 million). Simx's
gross assets were NZ$25.3 million (approximately GBP13.3 million)
as at 30 June 2017.
Volution expects the acquisition to be immediately earnings
enhancing in the year ending 31 July 2018 and will be reported
under Volution's Ventilation Group division.
The three Executive Directors, who were also the shareholders,
together with the sole Non-Executive Director on the board, stepped
down from their roles on completion of the transaction and have
left the business. As part of this transaction, Ian Borley, who has
been General Manager at Simx since 2009, has been appointed
Managing Director. Lee Nurse, who has been with Volution for 9
years and is currently the Group Product & Marketing Director,
will assist with the integration of Simx into the Group.
The combination of Ian Borley's knowledge and experience,
supported by the strong existing operational management team,
together with Lee Nurse's wider understanding of the Group and his
involvement with integrating previous acquisitions, creates the
right management platform to underpin our ambitious plans for
further growth of the business.
Commenting on the acquisition, Ronnie George, Chief Executive
Officer of Volution, said:
"We are delighted to have reached agreement to acquire Simx, a
trading partner of Volution for over 20 years and one of the first
overseas partners that I met when I joined Volution in 2008. In
that time, it has developed into the leading residential
ventilation product provider in the New Zealand market. This
acquisition is consistent with our stated strategy of making
selective value enhancing acquisitions in new markets where a
business has a leading market position. We are excited about
further developing Simx, in particular, by introducing more energy
efficient and aesthetically more attractive products to their
portfolio, and we believe the acquisition will deliver an
attractive return 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.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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