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10-11
CHARTERHOUSE SQUARE, LONDON EC1M 6EE
TELEPHONE:
+44 (0)20 7549 5700
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2 May 2024
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ACQUISITION OF UK SEALS
BUSINESS
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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
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For further information please
contact:
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Diploma PLC -
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+44 (0)20 7549 5700
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Johnny Thomson, Chief Executive
Officer
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Chris Davies, Chief Financial
Officer
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Holly Gillis, Head of Investor
Relations
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Teneo -
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+44 (0)20 7353 4200
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Martin Robinson
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Camilla Cunningham
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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
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/