Last checked at 12 Oct 2018 07:00
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
12 October 2018
DIPLOMA PLC
ACQUISITION OF GREMTEK GROUP
Diploma PLC, the international group of businesses supplying specialised technical products and services, is pleased to announce the acquisition of Actios SAS, the parent company of the Gremtek Group ("Gremtek") of companies, for an undisclosed consideration.
Gremtek is a long established and leading supplier of own branded protective sleeving and cable identification products to a broad range of industrial markets, principally in France, but also in Germany and elsewhere in Europe. Gremtek's principal location is in Gennevilliers, Paris, France where it has 27 employees and a further 10 employees are based at its facility in Quickborn, Germany.
Gremtek's range of own brand products, supplied from a portfolio of long-standing relationships, are used in harsh environments and in complex applications that require a high degree of technical knowledge and support. The business will be integrated into the Interconnect group within the Controls Sector as part of the strategy to develop a broader business across Europe, as well as providing a complementary range of own brand products for Interconnect's existing markets.
Prior to acquisition, Gremtek was privately owned by Mr Philippe Oudot, Gremtek's President, and his close family members (the "Sellers"). Mr Oudot will remain with the business until 31 December 2019 to ensure a smooth management transition.
In the year ended 31 December 2017, on a pro forma consolidated basis, Gremtek generated sales of approximately €10.8m and normalised operating profit of ca. €1.3m. The acquisition of Gremtek will be immediately earnings enhancing.
NOTE TO EDITORS:
Diploma PLC is an international group of businesses supplying specialised technical products and services to the Life Sciences, Seals and Controls industries.
Diploma's businesses are focussed on supplying essential products and services which are funded by the customers' operating rather than their capital budgets, providing recurring income and stable revenue growth.
Our businesses then design their individual business models to closely meet the requirements of their customers, offering a blend of high quality customer service, deep technical support and value adding activities. By supplying essential solutions, not just products, we build strong long term relationships with our customers and suppliers, which support attractive and sustainable margins.
Finally we encourage an entrepreneurial culture in our businesses through our decentralised management structure. We want our managers to feel that they have the freedom to run their own businesses, while being able to draw on the support and resources of a larger group. These essential values ensure that decisions are made close to the customer and that the businesses are agile and responsive to changes in the market and the competitive environment.
The Group employs ca. 1,700 employees and its principal operating businesses are located in the UK, Northern Europe, North America and Australia.
Over the last ten years, the Group has grown adjusted earnings per share at an average of ca. 14% p.a. through a combination of underlying growth and acquisitions. Diploma is a member of the FTSE 250 with a market capitalisation of ca. £1.4bn.
Further information on Diploma PLC, together with a copy of this Announcement, is available at www.diplomaplc.com
LEI: 2138008OG17VYG8FGR19
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