Diploma PLC Acquisition (3303H)
March 13 2015 - 3:00AM
UK Regulatory
TIDMDPLM
RNS Number : 3303H
Diploma PLC
13 March 2015
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
13 March 2015
DIPLOMA PLC
DIPLOMA ACQUIRES KUBO GROUP FOR A MAXIMUM
NET CASH CONSIDERATION OF GBP22.5m (CHF32.9m)
Diploma PLC, the international group of businesses supplying
specialised technical products and services, is pleased to announce
the acquisition of 100% of Rutin AG, the Swiss non-trading holding
company of the Kubo Group ("Kubo") of companies based in
Switzerland and Austria.
Kubo is a long established and leading supplier of seals,
O-Rings, gaskets and moulded rubber parts to a large and diverse
base of industrial customers in Switzerland and Austria. Kubo's
principal location is in Effretikon, near Zurich in Switzerland,
comprising a modern building with a combination of warehouse,
manufacturing and office facilities. Kubo employs ca. 100 people,
of which ca. 15 are based in the facility in Linz, Austria.
Kubo serves both the Industrial OEM and Aftermarket sectors,
typically in applications that require a high degree of technical
knowledge and support. The business specialises in high value
products that address harsh environments or complex applications.
Kubo also retains exclusive distribution rights in Switzerland and
Austria for certain large international manufacturers of sealing
products and O-Rings.
Prior to acquisition, Kubo was privately owned by Dr Thomas
Raible, its Chief Executive Officer ("CEO") and majority
shareholder, together with members of the Gebert family (Cyrill,
Manuel and Rebecca, represented by Christa Gebert) and Dr Georges
Bindschedler. Of the Sellers, only Dr Raible had an active
management role in Kubo and he will remain as the CEO of Kubo until
30 June 2015 to ensure a smooth management transition.
Profit before tax for Kubo in the year ended 31 December 2014
was CHF4.9m (GBP3.4m) on revenues of CHF32.4m (GBP22.2m); gross
assets at 31 December 2014 were CHF36.1m (GBP24.7m).
The cash consideration before acquisition costs is CHF39.9m
(GBP27.3m), which will be met from the Group's existing cash
resources and revolving bank credit facility. At completion, net
assets are expected to be approximately CHF30.3m (GBP20.7m),
including net cash of approximately CHF7.0m (GBP4.8m) and goodwill
of CHF11.6m (GBP7.9m). Also included in the net assets is the
freehold facility in Effretikon, with a net book value of CHF7.0m
(GBP4.8m) and a market value of at least CHF10.0m (GBP6.8m).
This transaction will be immediately earnings enhancing to the
Company and will be reported as part of the Seals sector
activities.
Bruce Thompson, Chief Executive of Diploma PLC said:
"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."
+44 (0)20 7549
Diploma PLC - 5700
Bruce Thompson, Chief Executive
Officer
Nigel Lingwood, Group Finance
Director
+44 (0)20 7353
Tulchan Communications - 4200
David Allchurch
Martin Robinson
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 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. 1,300 employees and its principal
operating businesses are located in the UK, Germany, US, Canada and
Australia.
Over the last five years, the Group has grown adjusted earnings
per share at an average of 20% p.a. through a combination of
organic growth and acquisitions. Diploma is a member of the FTSE
250 with a market capitalisation of ca. GBP900m.
Further information on Diploma PLC, together with a copy of this
Announcement, is available at www.diplomaplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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