Volution buys Denmark's Air Connection for £2.8m

Ventilation products supplier Volution has bought Danish rival Air Connection for DKK23.8m (£2.8m) in cash in a deal that will be funded from cash and banking facilities.

There is also a deferred consideration of £0.5m contingent on Air Connection's earnings for the year to the end of July 2021.

Volution said the deal, which it expects to be earnings-enhancing in the year ending 31 July 2019, 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.

It said the acquisition further broadens and strengthens its "leading" presence in the Nordic region, where it has been growing strongly both organically and by acquisition in recent years.

Established in 2004, Air Connection supplies branded ventilation products to the Danish market, including Volution products.

Chief executive officer Ronnie George said: "We are delighted to have reached agreement to acquire Air Connection and look forward to welcoming Allan Kristensen and his team to the Volution group. This acquisition is consistent with our stated strategy of making selective value adding acquisitions. Since listing, we have now completed 11 acquisitions and are pleased to add Air Connection, which further strengthens our position in the Nordics market.

"Air Connection provides us with an opportunity to enlarge our presence in the Danish market by introducing additional Volution Group product ranges via an established route to market. We believe the acquisition will deliver value for our shareholders."

At 1230 BST, the shares were down 0.4% to 201.24p.