Volution Group closes largest ever acquisition deal with Australian company

Volution Group has agreed to acquire Australian company Fantech in its largest ever acquisition.

The ventilation products seller has signed a deal worth a potential AUD$280 million (£144 million) to acquire Melbourne-based Fantech from Elta Group.

Established in 1973, Fantech is a leading supplier of commercial and residential ventilation in Australia and New Zealand, with over 350 employees and 13 sales, warehouse and manufacturing locations.

The company was originally known as Air & Noise Equipment Group and the brands it manages include Ideal Air, Burra Steel and NCS Acoustics.

In its latest financial year, which ran for the 12 months ending March 2024, Fantech posted revenues of £90.8m and pre-tax profit of £17.1m.

Volution said the acquisition would strengthen its market position in Australasia, where it has been active since acquiring Simx in March 2018.

The company also expects the transaction to be immediately accretive to earnings upon closing, helping to maintain the company’s adjusted operating margin above its long-term target of 20 percent.

Ronnie George, CEO of Volution, said: “This acquisition, our largest to date, provides Volution with a great platform to continue our growth in Australasia.

‘The combination of Fantech’s strong and long-standing trading presence in the region and greater access to Volution’s broad product portfolio provides us with an enviable platform for growth.’

Volution Group shares rose 10.8 percent to 614p on Friday morning after the deal was announced, meaning they have grown by around three-quarters over the past year.

Volution has achieved great success in recent years, partly due to the awareness that Covid-19 has created among households and businesses about the disadvantages of poorly ventilated buildings.

Volution’s UK operations have been further strengthened by regulations requiring new-build homes to have a reduced carbon footprint and offices to meet minimum energy efficiency standards.

Supervisors have also been given more powers thanks to the Social Housing Act, allowing them to ensure that landlords address unsafe conditions in their properties.