Diploma PLC Acquisition (7963D)

TIDMDPLM

RNS Number : 7963D

Diploma PLC

12 October 2018

DIPLOMA PLC

12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: [phone]

FACSIMILE: [phone]

FOR IMMEDIATE RELEASE

12 October 2018

 
                                     DIPLOMA PLC 
 
                             ACQUISITION OF GREMTEK GROUP 
 
             Diploma PLC, the international group of businesses supplying 
         specialised technical products and services, is pleased to announce 
           the acquisition of Actios SAS, the parent company of the Gremtek 
          Group ("Gremtek") of companies, for an undisclosed consideration. 
 
          Gremtek is a long established and leading supplier of own branded 
           protective sleeving and cable identification products to a broad 
             range of industrial markets, principally in France, but also 
           in Germany and elsewhere in Europe. Gremtek's principal location 
             is in Gennevilliers, Paris, France where it has 27 employees 
          and a further 10 employees are based at its facility in Quickborn, 
                                       Germany. 
 
           Gremtek's range of own brand products, supplied from a portfolio 
            of long-standing relationships, are used in harsh environments 
         and in complex applications that require a high degree of technical 
           knowledge and support. The business will be integrated into the 
             Interconnect group within the Controls Sector as part of the 
            strategy to develop a broader business across Europe, as well 
             as providing a complementary range of own brand products for 
                           Interconnect's existing markets. 
 
           Prior to acquisition, Gremtek was privately owned by Mr Philippe 
            Oudot, Gremtek's President, and his close family members (the 
         "Sellers"). Mr Oudot will remain with the business until 31 December 
                    2019 to ensure a smooth management transition. 
 
           In the year ended 31 December 2017, on a pro forma consolidated 
             basis, Gremtek generated sales of approximately EUR10.8m and 
            normalised operating profit of ca. EUR1.3m. The acquisition of 
                   Gremtek will be immediately earnings enhancing. 
 
 
 
             Diploma PLC -                             [phone] 
                           John Nicholas, Executive Chairman 
                        Nigel Lingwood, Group Finance Director 
 
             Tulchan Communications -                  [phone] 
                                    David Allchurch 
                                    Martin Robinson 
 
 
 
 
 
 
 
 
 
 
 
 
                                   NOTE TO EDITORS: 
 
 
            Diploma PLC is an international group of businesses supplying 
          specialised technical products and services to the Life Sciences, 
                            Seals and Controls industries. 
 
          Diploma's businesses are focussed on supplying essential products 
           and services which are funded by the customers' operating rather 
          than their capital budgets, providing recurring income and stable 
                                   revenue growth. 
 
            Our businesses then design their individual business models to 
             closely meet the requirements of their customers, offering a 
            blend of high quality customer service, deep technical support 
            and value adding activities. By supplying essential solutions, 
           not just products, we build strong long term relationships with 
        our customers and suppliers, which support attractive and sustainable 
                                       margins. 
 
          Finally we encourage an entrepreneurial culture in our businesses 
         through our decentralised management structure. We want our managers 
           to feel that they have the freedom to run their own businesses, 
          while being able to draw on the support and resources of a larger 
             group. These essential values ensure that decisions are made 
        close to the customer and that the businesses are agile and responsive 
              to changes in the market and the competitive environment. 
 
          The Group employs ca. 1,700 employees and its principal operating 
           businesses are located in the UK, Northern Europe, North America 
                                    and Australia. 
 
            Over the last ten years, the Group has grown adjusted earnings 
            per share at an average of ca. 14% p.a. through a combination 
            of underlying growth and acquisitions. Diploma is a member of 
              the FTSE 250 with a market capitalisation of ca. GBP1.4bn. 
 
 
           Further information on Diploma PLC, together with a copy of this 
                   Announcement, is available at www.diplomaplc.com 
 
                              LEI: 2138008OG17VYG8FGR19 
 

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October 12, 2018 02:00 ET (06:00 GMT)