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Volution announced on Friday that it has reached an agreement to acquire Fantech Group in Australasia from Elta Group for a total of up to AUD280 million. The transaction involves an initial payment of AUD220 million on a debt-free and cash-free basis, with an additional non-contingent payment of AUD60 million due one year after the completion of the deal.
Fantech Group encompasses several brands, including Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire, and Burra Steel. It is recognized as a significant provider of both commercial and residential ventilation solutions in Australia, as well as commercial ventilation services in New Zealand.
For the fiscal year ending March 31, 2024, Fantech reported audited revenue of AUD177 million and EBITDA of AUD33.3 million. Volution highlighted that this acquisition aligns with its established strategy of acquiring prominent ventilation brands to expand market access. This move builds on the company’s successful expansion in the region, which began with the acquisition of Simx in March 2018.
Once the acquisition is finalized, Australasia is projected to account for over 30% of Volution's revenue on a pro-forma basis. Chief Executive Ronnie George emphasized that this acquisition marks the largest transaction to date for Volution and will provide a robust platform for ongoing growth in Australasia.
George expressed enthusiasm about the opportunities that Fantech’s well-respected brand portfolio presents. He noted that Fantech is a leading provider of commercial ventilation solutions in Australia and New Zealand, which complements Volution's existing market positions in Ventair, Simx, and DVS Proven Systems.
The CEO also welcomed Fantech's 350 employees to the Volution family, expressing eagerness to collaborate closely with them post-acquisition. The combination of Fantech’s established presence in the region and Volution’s extensive product portfolio is anticipated to create a strong foundation for future growth.
This acquisition underscores Volution’s commitment to strengthening its position in the Australasian market, leveraging Fantech’s reputation and operational strengths. The strategic move is expected to enhance Volution’s competitive edge in the ventilation sector while broadening its offerings to customers across the region. As the integration process unfolds, the focus will be on maximizing the potential of this newly expanded portfolio and exploring further growth opportunities within the market.
