Volution to buy heating products company Energy Technique for GBP9.3m

Volution Group has reached an agreement to acquire fan coils and commercial heating products company Energy Technique for around £9.3m.

The ventilation products supplier said the acquisition, which is expected to be earnings-enhancing in the first full financial year, will be funded from existing cash resources and bank borrowing facilities and should complete by the end of the year.

Chief executive officer Ronnie George said: "This proposed acquisition is consistent with our stated strategy of making disciplined and value enhancing acquisitions. We believe that ETQ has a strong presence as a supplier to the UK new build commercial market, which is highly complementary to our strong position in the UK new build residential sector.

“We believe the acquisition will deliver value for our shareholders and consolidate our position in the UK heating ventilation and air conditioning market."

At 1232 GMT, Volution shares were down 1.9% at 187p.