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Volution Group PLC (LSE:FAN), a ventilation manufacturer listed on the FTSE 250, has announced the acquisition of Fantech Australasia from its UK parent company, Elta Group, for AUD$220 million (£112.9 million). This acquisition marks a significant expansion for Volution, as it will incorporate the full suite of Fantech's brands, which includes Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire, and Burra Steel.
Ronnie George, the chief executive of Volution, emphasized the strategic importance of this acquisition, describing it as the company's largest to date. He noted that it provides a strong platform for continued growth in the Australasia region. George expressed enthusiasm about the opportunities that come with owning a well-respected and successful group of brands. He highlighted that Fantech's established presence in the market, combined with Volution's extensive product portfolio, positions the company favorably for future expansion.
The acquisition is anticipated to be immediately earnings accretive, which suggests a positive impact on the company's financial performance from the outset. Fantech is projected to contribute over 30% of Volution's total revenues, indicating a substantial increase in scale and market presence.
In its latest financial year, Fantech reported revenues of AUD$177.0 million (£90.8 million), showcasing its strong operational capabilities. The integration of Fantech’s brands into Volution's portfolio is expected to enhance product offerings and strengthen market positioning within the ventilation sector.
This strategic move aligns with Volution's broader growth objectives and reinforces its commitment to expanding its footprint in the Australasia market. By leveraging Fantech's established reputation and combining it with Volution's resources, the company is well-positioned to capitalize on emerging opportunities in the ventilation industry.