22nd Aug 2018 07:58
LONDON (Alliance News) - Diploma PLC on Wednesday said it purchased FS Cables, comprising Caplink Ltd and FSC Global Ltd, for up to GBP18.0 million.
The FTSE 250-listed industrial supplies company said the businesses are based in St Albans, south-east England, and have a total of 62 employees. Caplink and FSC Global supply own-branded electrical, data and communications cable products and solutions to UK-based customers.
Diploma said it will pay an initial consideration of GBP17.0 million from its existing cash resources, and up to GBP1.0 million as deferred consideration will be payable depending on earnings before interest and tax achieved in financial 2018.
For the year to the end of October 2017, a combined pretax profit totalled GBP2.7 million on a revenue of GBP15.4 million, including intercompany revenue of GBP1.1 million.
Diploma expects the transaction to be immediately earnings enhancing. The company plans to integrate Caplink and FSC Global into its Controls Sector activities.
Related Shares:
Diploma