REG - Diploma PLC - Acquisition

DiplomaAnnouncement

02/05/2024 07:00

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RNS Number : 9039M  Diploma PLC  02 May 2024

     10-11 CHARTERHOUSE SQUARE, LONDON EC1M 6EE

     TELEPHONE: +44 (0)20 7549 5700

 

2 May 2024

 

 

 ACQUISITION OF UK SEALS BUSINESS

 

 

Diploma PLC ("Diploma" or the "Group"), the international value-add
distribution group, is pleased to announce the acquisition of PAR Group
("PAR") for ca. £38m.

 

PAR is a UK-based, family-owned supplier of specialist seals and gaskets into
a broad range of end markets. Its value-add customer proposition has driven a
track record of excellent growth at strong margins. It will form part of our
UK Aftermarket business in the Seals Sector, adding scale to R&G's Seal
& Gaskets division. With annual revenue of ca. £13m, PAR will be
immediately margin and EPS accretive to the Group. The investment represents a
ca. 7x FY24 EBIT multiple, with returns in the first year of acquisition well
in excess of our cost of capital.

 

Since the acquisition of R&G in April 2022, eight high-quality,
complementary businesses have been added, contributing to strong organic
growth of ca. 10% CAGR and supporting excellent margin progress.

 

In addition, following the announcement of the acquisition of Peerless
Aerospace LLC on 27 March, the transaction completed on 1 May 2024 and it is
now operating as part of the Group.

 

Johnny Thomson, Diploma's Chief Executive said:

"I'm delighted to welcome our new PAR colleagues to Diploma, bringing another
highly complementary, quality business into the Group. PAR has an excellent
customer-proposition with clear value-add. It's a fantastic addition to
R&G: building capability; further diversifying the customer base; and
expanding end markets."

 

END

 For further information please contact:

 Diploma PLC -                             +44 (0)20 7549 5700
 Johnny Thomson, Chief Executive Officer
 Chris Davies, Chief Financial Officer
 Holly Gillis, Head of Investor Relations

 Teneo -                                   +44 (0)20 7353 4200
 Martin Robinson
 Camilla Cunningham

 

NOTE TO EDITORS:

 

Diploma PLC is a decentralised, value-add distribution Group. Our businesses
deliver practical and innovative solutions that keep key industries moving -
from energy and infrastructure to healthcare.

 

We are a distribution group with a difference. Our businesses have the
technical expertise, specialist knowledge, and long-term relationships
required to deliver value-add products and services that make our customers'
lives easier. These value-add solutions drive customer loyalty, market share
growth and strong margins.

 

Our decentralised model means our specialist businesses are agile and
empowered to deliver the right solutions for their customers, in their own
way. As part of Diploma, our businesses can also leverage the additional
resources, opportunities and expertise of a large, international and
diversified Group to benefit their customers, colleagues, suppliers and
communities.

 

We employ c.3,500 colleagues across our three Sectors of Controls, Seals and
Life Sciences. Our principal operating businesses are located in the UK,
Northern Europe, North America and Australia.

 

Over the last fifteen years, the Group has grown adjusted earnings per share
(EPS) at an average of ca. 15% p.a. through a combination of organic growth
and acquisitions. Diploma is a member of the FTSE 100.

 

Further information on Diploma PLC can be found at www.diplomaplc.com
(http://www.diplomaplc.com)

 

Diploma hosted an Investor Seminar in June 2023. A recording is available on
our website:
https://www.diplomaplc.com/investors/results-reports-presentations/investor-seminar-2023/

 

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