Diploma PLC
30 July 2003
DIPLOMA PLC
FOR IMMEDIATE RELEASE
DIPLOMA ACQUIRES 95% OF HA WAINWRIGHT GROUP LIMITED FOR A MAXIMUM OF £8.2M
Diploma PLC, the international specialised distribution group, is pleased to
announce the acquisition of 95% of HA Wainwright Group Limited ('Hawco'), a
distributor of a broad range of instrumentation and control components used in
the measurement and control of temperature and pressure.
The acquisition of Hawco represents a strategic expansion of the Group's
Interconnect business which includes IS Rayfast and Clarendon in the UK and
Sommer in Germany. Hawco will provide access to new customer markets and will
extend the product offering of the Interconnect business.
Hawco's adjusted profit before interest and tax in respect of the year ended 31
December 2002, was £1.3m on sales of £16.9m. Hawco has its principal operations
in Guildford and Bolton. At 31 December 2002 it had 102 employees.
The cash consideration paid, before acquisition costs, is £7.8m which may be
subject to a minor adjustment relating to net assets at completion. Further
deferred consideration up to a maximum of £0.4m will be payable depending on the
operating profit of Hawco in the year ending 31 December 2003.
At completion, net assets are expected to be approximately £5.2m including cash
balances of £1.9m.
Bruce Thompson, Chief Executive of Diploma PLC said:
'This acquisition represents a further step in the pursuit of our strategy of
building a group of companies offering specialised products and services and
with the potential for growth and superior margins.'
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 7444 4157
Heather Salmond, Bankside Consultants 020 7444 4148
Note to Editors
Diploma PLC is a specialised international distribution group operating in three
sectors:
Life Sciences - supply of Instrumentation, Consumables and Service to the
research laboratories of the major pharmaceuticals and biotechnology companies,
universities and research institutions. Principal companies are Anachem in the
UK and a1-technologies in Germany.
Seals & Components - a next day delivery service for hydraulic seal kits,
cylinder components and gaskets, supplied to repair and maintenance operations
(RMOs) serving a broad range of mobile machinery aftermarkets. Principal
companies are Hercules Bulldog Sealing Products in North America and FPE in the
UK.
Interconnect - supply of high performance wiring, thermal shrink components,
fasteners and interconnect products into Defence, Aerospace, Motorsport and
Commercial Electronics markets throughout Europe. Principal companies are IS
Rayfast and Clarendon in the UK and Sommer in Germany. IS Motorsport, based in
the UK, also has a start-up operation in the US.
Within each of these sectors, the Diploma businesses serve industry segments
with long term growth potential and with the opportunity for sustainable
superior margins through the quality of customer service, depth of technical
support and value adding activities.
In the year to 30 September 2002, Diploma reported sales of £74m and pretax
profits of ca. £10m.
Further information is available on: www.diplomaplc.com
This information is provided by RNS
The company news service from the London Stock Exchange
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