Volution Group plc (LON:FAN), a leading international designer and manufacturer of energy efficient indoor air quality solutions, has confirmed that further to the announcement on 2 August 2021 it has now successfully completed the acquisition of Energy Recovery Industries1 (“ERI”), a leading manufacturer and supplier of low-carbon, energy efficient heat exchanger cells. The initial consideration for the acquisition was €23.4 million on a debt free cash free basis, with a further contingent cash consideration of up to €12.4 million based on stretching targets for the financial results for the year ending 31 December 2023.
The transaction has been funded from existing cash and the Group’s Sustainability Linked Revolving Credit Facility. For the financial year ended 31 December 2020, ERI generated revenue of €11.3 million and profit before tax of €2.0m, with gross assets of €7.6m. Revenue is growing at double digit rates in calendar year 2021 and the acquisition is expected to be immediately earnings accretive for the Group.
A comprehensive and pre-existing expansion plan is in progress which will include the acquisition of adjacent land, extension of the factory and further investment in machinery and automation, to support ERI’s growth ambitions. Sales and distribution entities in Italy, Spain and the U.K. also form part of the transaction, and the founding major shareholder Umberto Fiorentini and his senior management team will remain with the business and continue to lead it post completion.
1 Acquisition encompasses 100% of ERI Corporation DOO Bitola (North Macedonia), 100% of ERI Corporation S.R.L. (Italy), 100% of Energy Recovery Industries Trading SLU (Spain) and 51% of Energy Recovery Industries Corporation Ltd (UK).
Volution Group plc is a leading international designer and manufacturer of energy efficient indoor air quality solutions. Volution Group comprises 19 key brands across three regions: