13th Mar 2015 07:14
LONDON (Alliance News) - Diploma PLC on Friday said it has struck a deal to buy the Kubo Group for up to CHF39.9 million in cash before acquisition costs.
Kubo is a seals, O-Rings, gaskets and moulded rubber parts company with operations in Switzerland and Austria. Diploma is acquiring the business via Rutin AG, the non-trading holding company of Kubo based in Switzerland.
Diploma said it will pay the consideration due on the deal in cash from its existing cash resources and revolving debt facility. It expects the deal to be immediately earnings accretive and will integrate the business into its Seals division.
It said Kubo comes with net cash of CHF7.0 million, making the net cash price CHF32.9 million.
"The acquisition of Kubo Group fits very well with Diploma's strategy in Seals of building a stronger European business in the supply of seals, gaskets and related products to both the Industrial OEM and Aftermarket sectors. The acquisition will also open up opportunities for cross selling of products with Diploma's other Seals businesses, including access to Kubo's high precision, manufactured parts," said Diploma Chief Executive Bruce Thompson.
By Sam Unsted; [email protected]; @SamUAtAlliance
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