10th Oct 2006 07:00
Diploma PLC10 October 2006 FOR IMMEDIATE RELEASE 10 October 2006 DIPLOMA ACQUIRES CBISS LIMITED FOR A MAXIMUM OF £6.0m Diploma PLC, the international specialised distribution group, is pleased to announce the acquisition of CBISS Limited ("CBISS"), a leading supplier of equipment and services for environmental monitoring and control. CBISS is headquartered in Tranmere, near Liverpool, where it operates from a 7,500 square foot leasehold facility and employs 54 staff. It also has two small satellite locations in Stockport and Farnham. Prior to acquisition, CBISS Limited was owned by its management, comprising Mr and Mrs P McQue and Messrs K Roberts and S Duggan. CBISS is the leading supplier of bespoke Continuous Emission Monitoring Systems (CEMS) to waste incineration plants in the UK and is extending into Power, Chemicals and other industries. It also supplies systems for gas leak detection and process and toxic gas monitoring. Systems are supported by CBISS under comprehensive service contracts, providing repair, calibration and maintenance services and 24 hour, seven days a week, remote diagnostics service. Analyser hire is also available through EIM (Northern) Limited, a subsidiary of CBISS. Operating profit before tax for the CBISS group (including EIM (Northern) Limited) in the year ended 31 July 2006 was £1.2m on sales of £6.2m. Consolidated gross assets at 31 July 2006 were £4.0m, including net cash of approximately £0.9m. The initial cash consideration to be paid, which will be met from the Group's existing cash resources, is £5.25m, before acquisition costs. This may be subject to an adjustment up to a maximum of £0.25m, based on the net assets at completion. Further deferred consideration up to a maximum of £0.5m will be payable, depending on the operating profits of CBISS in each of the years ending 30 September 2007 and 2008. Bruce Thompson, Chief Executive of Diploma PLC said: "The acquisition of CBISS fits with Diploma's strategy in its Life Sciences sector of increasing its presence in the Industrial and Environmental market. This acquisition will add scale and critical mass to a1-envirosciences' operations in the UK and offer opportunities for growth, both in the UK and more broadly in Europe." For further enquiries please contact: Bruce Thompson, Chief Executive Officer 020 7638 0934 Nigel Lingwood, Group Finance Director 020 7448 4875 Ian Seaton, Bankside Consultants 020 7367 8891 NOTE TO EDITORS: Diploma PLC is a specialised international distribution group operating in threesectors: Life Sciences - Distributors of consumables, instrumentation and relatedservices to research, development and diagnostic laboratories. Principalcompanies are Anachem Group and a1-envirosciences in Europe, and Somagen inCanada. Seals - Next day delivery of hydraulic seal kits, gaskets and cylinders, formobile machinery. Principal companies are Hercules Bulldog Sealing Products andHKX in North America and FPE in the UK. Controls - Distributors of specialised wiring, connectors and control devicesfor a range of technically demanding applications. Principal companies are ISGroup in the UK and US, Sommer & Filcon in Germany and Hawco in the UK. Within each of these sectors, the Diploma businesses serve industry segmentswith long term growth potential and with the opportunity for sustainablesuperior margins through the quality of customer service, depth of technicalsupport and value adding activities. Further information on Diploma PLC can be found at www.diplomaplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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