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Highlights

  • Genuit acquires Monodraught for £55.6m, boosting its Climate Management Solutions business.

  • Monodraught adds advanced ventilation, heating, and cooling technologies with exposure to the UK education sector.

  • Acquisition expected to be EPS accretive in year one and deliver ROIC above WACC by year two.

Genuit Group plc (LSE:GEN), the UK’s largest provider of sustainable water, climate, and ventilation solutions for the built environment, has announced the acquisition of Monodraught Topco Limited (Monodraught) for a total consideration of £55.6 million on a debt-free and cash-free basis. The acquisition has been funded through Genuit’s existing debt facilities and will be integrated into the Group’s Climate Management Solutions (CMS) business unit.

About Monodraught

Founded more than 50 years ago and headquartered in High Wycombe, UK, Monodraught specialises in natural and hybrid ventilation, heating, and cooling solutions for commercial buildings. The company has a focus on the UK education sector, supported by advanced controls and data management systems. Between 2021 and 2024, Monodraught delivered a 13% compound annual growth rate in organic revenues, with a forecast calendar 2025 revenue of approximately £19 million.

Monodraught also provides technical support and design expertise, extending through to commissioning and post-installation services, where its advanced controls solutions allow building operators to manage performance in line with design specifications. The business is positioned to benefit from regulatory and policy drivers, such as BB1014 requirements for fresh air in schools and the CF255 framework for the building and refurbishment of education facilities in England.

Strategic Fit

Genuit stated that the acquisition increaess its CMS business by expanding service capabilities, controls, and data management expertise. Monodraught’s portfolio of low-carbon heating and cooling technologies aligns with Genuit’s strategic focus on climate change adaptation and mitigation, while also accelerating the development of integrated heating and cooling solutions across the Group’s wider offering.

The deal is highly complementary to Genuit’s existing ventilation brands, Nuaire and Domus, with minimal product or market overlap. Genuit expects the acquisition to provide Monodraught with increased market access beyond its core education sector and to generate growth opportunities through commercial scale.

As part of Genuit, Monodraught will also benefit from the Genuit Business System, designed to unlock synergies, share best practice, and drive operational efficiency.

Financial Highlights

The transaction consideration of £55.6 million represents a multiple of 12x enterprise value to EBITDA, based on Monodraught’s 2025 full-year estimates. The acquisition is expected to be earnings per share (EPS) accretive in the first full year of ownership.

Return on invested capital (ROIC) is forecast to exceed the Group’s weighted average cost of capital (WACC) in the second full year of ownership, before synergies. Post-acquisition, year-end 2025 leverage is projected to remain below 1.2x.

Outlook

Genuit emphasised that the acquisition underpins its strategic focus on high-growth, sustainability-driven markets, with environmental and regulatory tailwinds supporting expansion in CMS. By integrating Monodraught, the Group aims to further enhance its offering of sustainable, low-carbon solutions for the built environment, particularly in the education sector and broader commercial property market.