Volution's largest operation is Vent-Axia, the UK's leading branded ventilation business. Vent-Axia supplies a comprehensive range of ventilation products and is the market leader in the UK for both residential and commercial/industrial electrical fans. The ventilation division also incorporates the Torin-Sifan OEM fan and blower supplier. The ventilation market in the UK is being driven strongly by government spending on social housing, increasing levels of brown-field development and increasingly tough building regulations relating to environmental standards.

The balance of Volution's operation is its cable management division, which produces the UK market leading brands, Kopex and Adaptaflex. These flexible conduit products are used in construction, industrial, electrical and automotive products, where wiring needs to be protected from harsh environments. The division also produces a range of related components. The division operates in a market driven by increasing regulatory standards, which differ from jurisdiction to jurisdiction. Volution is well placed as its products conform to a number of international standards, including the recently adopted US regulations, opening up significant new market potential. 

Volution operates from six facilities in the UK: Ventaxia in Crawley and Dudley, Torin-Sifan in Swindon and Witney, and cable management in Coleshill and Newtown.

As a result of the buy-out, ABN AMRO Capital will acquire a 69.6% stake in Volution. The company's management team will invest alongside ABN AMRO Capital and will hold the remainder of the equity. RBS will provide senior, second lien and mezzanine debt.

Dominic Collier and Andrew Moye co-ordinated the investment on behalf of ABN AMRO Capital and will join the board of Volution as non-executive directors. A non-executive Chairman will be appointed to oversee and help develop the group's strategy.

In 2002, Volution was acquired by Montagu when it backed the incumbent management team, led by current Chief Executive Kevin Sargeant, to buy the business from Smiths Industries. Since then the management team has undertaken considerable rationalisation within the business by disposing of an equipment rental operation and focussing on ventilation and cable management.

The business has seen steady profit growth and cash generation. Total sales have grown to a forecast GBP 100.4 mln in the year to July 2006. EBITDA has grown to GBP 19.6 mln. There is significant potential for further development of the group going forward both through organic growth and corporate development.

Paul Southwell, Managing Partner of ABN AMRO Capital's UK buyout team, said: "Volution is a market-leader with a proven management team that has consistently out-performed its targets. They are keen to move the business through the next stage in its development. We look forward to working with them to realise that ambition." 

Jason Gatenby, Montagu Director said: "This has been an excellent investment for us. Volution has performed extremely well under the leadership of Kevin Sargeant and his first rate team. We wish everyone at Volution well for the future." 

Kevin Sargeant, Chief Executive of Volution, said: "We are delighted to have secured ABN AMRO Capital's backing for a secondary buy-out. Working in partnership with them, we look forward to further developing and growing the business."

Since the beginning of 2006, ABN AMRO Capital has completed seven European buy-outs with an aggregate deal value of EUR 1.1 bln and has realised five exits. Previous investments in the sector have included Outinord (France, June 2006), Groupe OFIC (France, March 2006) and Nueva Terrain (Spain, July 2005).

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