Volution Group Plc (FAN.L), a maker of ventilation products, said on Friday that it has signed a deal to acquire the Fantech Australasia business of Elta Group Ltd. for an initial consideration of A$220 million on a debt free, cash free basis.

The deal includes a further non-contingent consideration of A$60 million payable a year after the completion of transaction.

"The acquisition will be earnings accretive immediately upon completion, with the Group maintaining its adjusted operating margin post completion above the long-term target of 20 percent," the acquirer said.

The transaction aims to further expand Volution's market and products.

This acquisition will be financed using cash on hand and recently completed refinancing of its revolving credit facility.

Fantech, which includes the Fantech, Ideal Air, NCS Acoustics, Air Design, Major Air, Systemaire, and Burra Steel brands, is a provider of both commercial and residential ventilation in Australia and New Zealand.

For the 12-month period to March 31, Fantech had reported revenue of A$177 million, with EBITDA of A$ 33.3 million.

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