Towerbrook's Volution confirms intention to float

Ellie Pullen
11 June 2014

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Towerbrook portfolio company Volution has announced its plans to list on the London Stock Exchange, just a month after unquoteт learned of the potential flotation.

The company plans to offer both new and existing shares in the IPO, with expectations to raise around £72m through the sale of new shares.

Volution will use the proceeds from the sale of new shares to pay down and refinance its existing debt, which it expects to stand at around £55m following the flotation under a new facility. The company also expects to have around £20m in acquisition financing and £13m under a revolving credit facility.

Towerbrook, as well as some of the company's executive directors and other employees, will also sell off part of their stakes in the offering.

unquote" learned of the potential flotation at the beginning of May. Towerbrook declined to comment at the time.

Admission to the stock exchange is expected to take place sometime this month. Canaccord Genuity is acting as sole sponsor for the flotation, as well as joint bookrunner alongside Liberum Capital.

Towerbrook acquired Volution in January 2012 from AAC Capital in a deal reported to be worth around £160m with £80m of senior debt provided by Bank of Ireland, GE Capital and Royal Bank of Scotland.

AAC reaped a 2.4x money multiple on its original £49.25m investment through the sale, according to unquote" data. The firm had acquired Volution in 2006 from Montagu Private Equity for £160m, taking a 69.6% stake in the business.

Formed as a group in 2002, Volution comprises Torin-Sifan, Manrose, Vent-Axia and Fresh Ventilation. The group is a manufacturer of ventilation products.

Crawley-headquartered Volution generated revenues of £102.3m for the year ending July 2013, as well as an adjusted EBITDA of £23.8m with a margin of 23.3%. Ronnie George is the company's CEO.