Volution Group acquires ERI in €23.4m bid
By Dan Moore
07:40, 2 August 2021
Residential and commercial ventilation system provider Volution Group is in the process of purchasing Energy Recovery Industries (ERI).
Following an initial down-payment of €23.4m (US$27.8m), the group will lay out a further €12.4m should financial targets for the year to 31 December 2023 be met.
Synergy with Volution
ERI has built up a reputation for quality products, which are produced at its facility in Bitola, North Macedonia. It designs and supplies aluminium heat exchanger cells, which are primarily used in commercial heat recovery ventilation systems.
The company already has a relationship with Volution Group companies. As part of the arrangement, land adjacent to the Bitola factory will be purchased and developed to boost capacity and sales potential in key areas including Italy, Spain and the UK.
Volution confirmed that founding major shareholder Umberto Fiorentini and other members of the firm’s senior management will remain on board. Michael Parker, MD and minority shareholder of the UK sales segment, will continue to own 49% of the UK entity.
Track record promise of future success
ERI generated revenue of €11.3m and profit before tax of €2m, with gross assets of €7.6m also standing out on the company’s books.
The arrangement is expected to be sealed following the approval of the Merger Authority in North Macedonia within the next four to six weeks.
Positive outlook for low carbon future
Commenting on the acquisition, Volution CEO Ronnie George said: “We are delighted to reach agreement to acquire Energy Recovery Industries and to add this exciting low-carbon technology to our group’s capabilities.
“The increasing focus of governments in achieving their local net zero carbon targets, the International Building Regulation response plus key recommendations made recently in the ‘Fit for 55’ announcement are all structural growth drivers for the use of heat recovery cells.
“The combination of Volution’s appetite to invest and the ERI team’s expertise in this area of the market will make for an exciting combination.”