DAVY VIEW

The acquisition of Monodraught is a welcome initiative and represents Genuit’s first deal of size in a number of years. Investment in the fast-growing ventilation category makes sense, although the initial acquisition cost of 12x EBITDA looks a full price. Monodraught should add circa 4% to Genuit’s EBITDA over a full year, and the acquisition will not unduly extend the group’s leverage which is expected to remain under 1.2x.