Volution to buy Fantech Australasia for up to AUD280m

Volution said on Friday that it has agreed to buy Fantech Group in Australasia from Elta Group for up to AUD280m (£144m).

The price includes an initial consideration of AUD220m (£112.9m) on a debt/cash free basis, with a further non-contingent consideration of AUD60m (£30.8m) payable a year after the completion date.

Fantech, which includes the Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire and Burra Steel brands, is a provider of both commercial and residential ventilation in Australia and commercial ventilation solutions in New Zealand.

For the year ended 31 March 2024, the business reported audited revenue of AUD177m (£90.8m) and EBITDA of AUD33.3m (£17.1m).

Volution said the deal is consistent with its "long-established strategy of acquiring leading ventilation brands to extend our routes to market and builds on the group's successful expansion in the region since our first acquisition of Simx in March 2018".

Once the deal completes and on a pro-forma basis, Australasia will represent over 30% of Volution's revenue.

Chief executive Ronnie George said: "This acquisition, our largest to date, gives Volution a great platform to continue our growth in Australasia. We are excited by the opportunities available to us through owning such a well-respected and successful group of brands.

"Fantech is a leading provider of commercial ventilation solutions in Australia and New Zealand, and complements our existing local market positions in Ventair, Simx and DVS Proven Systems very well.

"I would like to welcome our 350 Fantech colleagues to Volution and I look forward to working closely with them once the acquisition completes. The combination of Fantech's strong and longstanding trading in the region with greater access to Volution's wide product portfolio gives us an enviable platform for growth."