Volution Holdings

Manufacturer and supplier of heating, ventilation and air conditioning systems

In December 2002 Montagu led the Management Buyout of Smiths Group plc's building products division which was renamed Volution Holdings Limited.

Volution included market leading brands such as Vent-Axia (ventilation), Kopex and Adaptaflex (ducting and fittings for electrical cables). At completion, Volution's turnover was in the region of £115 million.

Smiths Group was selling its building products businesses as part of a wider programme of disposals to enable it to focus on its core aerospace and medical markets. At the time of our approach Smiths was considering separate disposals of its air movement and cable management divisions.

We saw that both divisions were under common management and serving common customers. We therefore approached Smiths Group with an offer for both divisions. This approach simplified the disposal for the vendor and had the support of management who had plans for both product groups.

Our previous knowledge of the building products industry through our successful investment in Caradon and our excellent relationship with management enabled us to move quickly and confidently through the acquisition process.

In May 2003 Volution disposed of Airstream, its washroom rentals division for £25 million and in August 2006 Volution was sold to ABN AMRO Capital, the private equity arm of ABN AMRO.

Deal details

Deal type: Management Buyout Investment Year: 2002 Country: United Kingdom Status: Realised Value: £125 million Industry Sector: Industrials