Volution Group plc has signed an agreement worth £144 million to acquire the Fantech Group of companies.
Volution, headquartered in Crawley, Sussex and listed in London, is an international designer and manufacturer of energy efficient indoor air quality solutions.
The company has a focus on innovation aligned with environmental, health, regulatory and consumer developments. It spends £4.5m on R&D annually, according to its website, and before this deal had made 25 acquisitions for circa £250m since 2012.
It has acquired 100% of Fantech from UK-based Elta Group Ltd for an initial consideration of £112.9m, with further non-contingent consideration of £30.8m payable 12 months after the completion date.
Fantech, which includes the Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire and Burra Steel brands, is a leading provider of both commercial and residential ventilation in Australia and commercial ventilation solutions in New Zealand.
Originally formed in 1973 as the Air & Noise Equipment Group and transitioning to the Fantech brand in 1982, it has been one of the leading providers of ventilation equipment in the region for over 50 years.
In 2021, the company moved to a new 20,000m purpose-built and future-proofed headquarters in Melbourne. For the financial year ended 31st March 2024, Fantech reported revenue of £90.8m and EBITDA of £17.1m.
It has 13 manufacturing, warehouse and sales locations across Australia and New Zealand, and over 350 employees.
Volution recently completed the refinancing of its previous revolving credit facility with a new £230m multi-currency revolving credit facility, plus £70m uncommitted accordion facility.
“This acquisition, our largest to date, gives Volution a great platform to continue our growth in Australasia,” said CEO Ronnie George. “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.”