1st Mar 2019 09:40
LONDON (Alliance News) - Ventilation products supplier Volution Group PLC said Friday it bought Australian peer Ventair Ltd for up to AUD26.9 million, or GBP14.6 million, in cash.
Volution will buy Melbourne-based Ventair on a cash and debt free basis for an initial AUD19.2 million. A further AUD7.7 million in cash may be paid if the firm achieves undisclosed earnings before interest, taxes, depreciation and amortisation targets for the year ending July 2020.
For the year ended June 2018, Ventair generated AUD2.1 million pretax profit on revenue of AUD18.4 million. Ebitda stood at AUD2.4 million.
By comparison, Volution generated GBP16.7 million pretax profit on revenue of GBP205.7 million in its own financial year ended July 2018.
Volution Chief Executive Officer Ronnie George explained he was "delighted" to have acquired Ventair.
"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," George added.
"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," George continued. "We believe the acquisition will deliver value for our shareholders."
Shares in Volution were 2.4% lower at 150.50 pence on Friday.
Related Shares:
Volution Group PLS