Volution Group PLS Share News (FAN)

(Sharecast News) - Ventilation products supplier Volution has bought Australia's Ventair, a supplier of air movement products, for up to AUD26.9m (£14.6m). The acquisition includes an initial cash consideration of AUD19.2m (£10.4m), funded from the company's existing cash and banking facilities. There is also a further deferred cash consideration of up to AUD7.7m (£4.2m), contingent on Ventair's EBITDA for the year to 31 July 2020.Based in Melbourne, with warehouses in Brisbane and Perth, Ventair sells to electrical wholesalers and retail distribution partners who together have over 2,000 outlets nationally. In the year to 30 June 2018, the business generated revenue of AUD18.4m (£10m) and reported pre-tax profit of AUD2.1m (£1.1m).Volution said the deal is in line with its 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. Chief executive Ronnie George said: "We are delighted to have acquired Ventair and look forward to welcoming Gary Purcell and his team to the Volution Group. This acquisition is consistent with our stated strategy of making selective value-adding acquisitions and we are excited about the opportunity to enlarge our presence in the Australasian region by introducing additional Volution Group product ranges via established routes to market."The range of Ventair products, coupled with the existing Volution product range, provides us with an attractive and improved portfolio for both the Australian and New Zealand market. We believe the acquisition will deliver value for our shareholders."At 1450 GMT, the shares were down 0.2% to 154p.