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LONDON (Alliance News) - Diploma PLC on Wednesday said it has acquired Cablecraft Ltd, headquartered near Dunstable in the UK, which provides cable accessory products used to identify, connect, secure and protect electrical cables, for up to GBP26.0 million in net cash.
In a statement, the technical products and services company said that Cablecraft's customers include wholesalers, distributors and end-users in industries such as electrical contracting, control panel building, rail and signalling engineering and Energy & Utilities.
Cablecraft was owned by Christopher Jenart and Ian King-Lee, joint managing directors and their immediate family, before the acquisition. Both Jenart and King-Lee will remain with the business in their current roles until at least March 31, 2017.
The acquired company made a GBP3.5 million pretax profit in 2015, according to Diploma, on revenue of about GBP15.4 million. It said Cablecraft will be immediately earnings enhancing for Diploma.
Diploma will pay GBP21.0 million, before acquisition costs, on completion of the purchase, using existing cash resources and its revolving bank credit facility. A deferred payment of up to GBP5.0 million could be paid, depending on earnings before interest and tax generated Cablecraft's financial years to the end of March 2016 and 2017.
"The acquisition of Cablecraft is an exciting addition to our controls sector. It supplies a range of essential products that are similar to those supplied by the IS-Group but extends substantially both the product range and the industrial end markets served," Bruce Thompson, chief executive of Diploma, said.
"The acquisition fits very well with Diploma's strategy of building a larger, broader base of specialised businesses in the controls sector. The acquisition also opens up opportunities for cross selling products with Diploma's other controls sector businesses," Thompson added.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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