11th Jul 2019 08:02
(Alliance News) - Technical products and services firm Diploma PLC on Thursday announced the GBP56.0 million takeover of a gasket and fluid-sealing products maker.
Virginia Sealing Products Inc specialises in customers who process and transport hazardous materials but also operates in markets such as power generation, pulp & paper, and marine.
Diploma is paying GBP56.0 million in cash upfront, but it may also pay a further GBP8.0 million if VSP meets various operating profit targets.
The deal will be funded from existing cash and new debt, but Diploma said it "will continue to maintain a strong balance sheet".
Chief Executive Johnny Thomson said: "We are delighted to welcome VSP into the Diploma group. The business has an excellent management team, a strong service culture, and an impressive customer and supplier base.
"The acquisition is consistent with our strategy and provides an exciting opportunity to extend our Seals activities in North America."
Diploma shares were up 1.9% at the London open in Thursday at 1,367.66 pence.
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