Volution Group plc (LSE:FAN) signed an agreement to acquire Energy Recovery Industries on August 2, 2021. The initial consideration will be paid of €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. 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. The Managing Director and minority shareholder of the U.K. sales entity, Michael Parker, will continue to own 49% of the shares of the U.K. entity. The transaction will be funded from existing cash and the Group's Sustainability Linked Revolving Credit Facility. ERI reported a revenue of €11.3 million and profit before tax of €2 million, with gross assets of €7.6 million for the period end on December 31, 2020. Completion of the transaction is conditional on approval of the Merger Authority in North Macedonia, and is expected to take approximately four to six weeks. Tulchan Communications LLP acted as strategic advisor to Volution Group plc. Uros Camilovic of BDO LLP provided due diligence to Volution Group plc.

Volution Group plc (LSE:FAN) completed the acquisition of Energy Recovery Industries Corp. S.r.L. on September 10, 2021.