Volution Group (FAN) M&A Announcement summary

Deal rationale and strategic fit

• Acquisition creates a leading residential and commercial ventilation platform in Australasia, expanding Volution's regional presence and reach into new end market applications.

• Fantech's established brands and broad customer base complement Volution's existing businesses in Australia and New Zealand.

• Builds on Volution's prior acquisitions and strategy of acquiring leading ventilation brands, reinforcing leadership in both commercial and residential segments.

Financial terms and conditions

• Total consideration of AUD $280 million (£144 million), with AUD $220 million upfront and AUD $60 million deferred for 12 months.

• Valuation at 8.5x FY24 EBITDA; Fantech reported FY24 revenue of AUD $177 million and EBITDA of AUD $33.3 million.

• Funded through a new £230 million multi-currency revolving credit facility and cash.

• Proforma leverage expected to rise to 1.5-1.7x post-completion, with strong de-leveraging anticipated after deferred payment.

Synergies and expected cost savings

• Transaction is immediately earnings accretive upon completion.

• Combination with Volution's Ventair in Australia and Simx/DVS in New Zealand expected to create a diversified customer base and cross-selling opportunities.

• Enhanced operating footprint and access to Volution's product portfolio anticipated to support continued growth.