Volution Group acquires Nordiska Klimatfabriken in Sweden
LONDON: Volution Group, a leading international designer and manufacturer of energy efficient indoor air quality solutions, has signed an agreement for the acquisition of Nordiska Klimatfabriken AB in Sweden.
Klimatfabriken specialises in the provision of premium low carbon ventilation equipment for the residential refurbishment market in Sweden, which the business designs and manufactures at its facility in Solö just outside Strängnäs in Sweden.
Revenue in the year ended 31st December 2020 was approximately SEK 12 million. The acquisition will be completed on a debt free, cash free basis for cash consideration of SEK 40 million (approximately £3.5 million), to be funded from the Group’s existing cash and our recently announced Sustainability Linked Revolving Credit Facility.
“The Klimatfabriken business complements our existing market-leading residential refurbishment ventilation position in the Nordics, and integration into our existing infrastructure in the Nordics will be complete by the end of this financial year,” a news release said.
Ronnie George, Volution Chief Executive Officer, commented: “As a strategically important acquisition, the additional product portfolio from Klimatfabriken provides new cross-selling opportunities for our existing Group companies, and strengthens our market position within the Nordics. Concentrating exclusively on low carbon, energy saving ventilation solutions, they are very well aligned with our strategy of delivering healthy air, sustainably.”
The Board expects revenue for the half-year to 31st January 2021 to be around 8.5% ahead of the comparative period, on a constant currency basis.
Whilst COVID-19 disruption and the well-publicised issues around imports and exports through UK ports have created some input material supply challenges, our order intake remains strong, and our asset light and flexible operating model continues to be resilient in servicing demand.
The Board is very pleased with our growth in the first half of the financial year and that we will have achieved our operating margin target of 20%.
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