Acquisition

RNS Number : 7823C

Diploma PLC

20 April 2017

 

DIPLOMA PLC

                                           12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX

TELEPHONE: [phone]

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FOR IMMEDIATE RELEASE

20 April 2017

DIPLOMA PLC ACQUIRES ABACUS ALS PTY LTD

FOR MAXIMUM CONSIDERATION OF £15.7m (A$26.0m)

Diploma PLC, the international group of businesses supplying specialised technical products and services, is pleased to announce the acquisition of 100% of Abacus ALS Pty Ltd ("Abacus"). 

Abacus is a long-established supplier of clinical diagnostics instrumentation and consumables to the Pathology and Life Sciences sectors. Abacus has particular strengths in Immunology and Biochemistry testing, supplying to both the public and private laboratories in Australia and New Zealand. Abacus also supplies to research and educational institutions, blood donor services and specialist centres including IVF and veterinary laboratories.

The business employs 44 staff across its principal locations in Brisbane, Australia and Auckland, New Zealand and the existing management team will remain with the business.

Abacus's audited revenues in the year ended 30 June 2016 were ca. £13.6m (A$22.6m) and the audited profit before tax was ca. £1.5m (A$2.5m), after charging losses of discontinued businesses and other non-recurring expenses. After adjusting for these exceptional items, underlying operating profit was ca. £1.8m (A$3m). Audited gross assets at 30 June 2016 were £5.6m (A$9.2m).

The initial cash consideration, including net debt acquired but before acquisition costs, is £13.6m (A$22.5m) which will be met from the Group's existing cash resources and revolving bank credit facility. This may be subject to minor adjustment based on the net assets at completion. Further deferred consideration up to a maximum of £2.1m (A$3.5m) may be payable in 2017 depending on the operating profit out-turn of the business in the year ending 30 June 2017.

The Board expects this acquisition to be immediately earnings enhancing to the Group and will be reported as part of the Life Sciences activities.

Bruce Thompson, Chief Executive of Diploma PLC said:

"This acquisition fits well with Diploma's strategy of building a larger, broader based Healthcare business with core strengths in Clinical Diagnostics and Surgical Products.  Abacus has a good fit with our existing Healthcare businesses in Australia and New Zealand and opens up further growth opportunities."

For further enquiries please contact:

Diploma PLC -	[phone]
Bruce Thompson, Chief Executive Officer
Nigel Lingwood, Group Finance Director
Tulchan Communications -	[phone]
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 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. 1,600 employees and its principal operating businesses are located in the UK, Northern Europe, North America and Australia.

Over the last five years, the Group has grown adjusted earnings per share at an average of ca. 8% p.a. through a combination of organic growth and acquisitions.  Diploma is a member of the FTSE 250 with a market capitalisation of ca. £1.2bn.

Further information on Diploma PLC is available at www.diplomaplc.com

LEI: 213800OG17VYG8FGR19

 

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