- Volution has signed a deal with Fantech worth a potential AUD$280m (£144m)
Volution Group has agreed to buy the Australian company Fantech in its largest-ever acquisition.
The ventilation products seller has signed a deal worth a potential AUD$280million (£144million) to acquire Melbourne-headquartered Fantech from Elta Group.
Founded in 1973, Fantech is a prominent supplier of commercial and residential ventilation across Australia and New Zealand, with over 350 employees and 13 sales, warehouse and manufacturing venues.
Acquisition deal: Volution Group has agreed to buy the Australian company Fantech
Originally known as the Air & Noise Equipment Group, the company’s brands include Ideal Air, Burra Steel, and NCS Acoustics.
In the last financial year covering the 12 months ending March 2024, Fantech posted revenue of £90.8million and earnings before nasties of £17.1million.
Volution said the purchase would help strengthen its market reach in Australasia, where it has maintained a presence since acquiring Simx in March 2018.
It also expects the transaction to be immediately earnings accretive once finalised, with the business keeping its adjusted operating margin above its long-term target of 20 per cent.
Ronnie George, chief executive of Volution, said: ‘This acquisition, our largest to date, gives Volution a great platform to continue our growth in Australasia.
‘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.’
Volution Group shares surged 10.8 per cent to 614p on Friday morning following the deal’s announcement, meaning they have expanded by around three-quarters over the past year.
Volution has enjoyed significant success in the past few years partly due to Covid-19 raising awareness among households and companies around the downsides of poorly ventilated buildings. .
Volution’s UK business has been further boosted by regulations requiring newly-built houses to have lower carbon footprints and offices to abide by minimum energy efficiency standards.
Regulators have also gained more powers under the Social Housing Act to ensure landlords address unsafe conditions in their properties.
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