Diploma Buys Virginia Sealing Products In Initial $70 Mln Cash Deal
Diploma Plc. (DPLM.L), a supplier of specialized technical products and services, announced Thursday the acquisition of the assets and trade of Virginia Sealing Products, Inc. for the initial cash consideration of 56 million pounds or about $70 million.
Further deferred consideration of up to a maximum of 8 million pounds or $10 million may be payable in late 2020 subject to achievement of operating profit targets.
The company expects the acquisition to be immediately earnings enhancing and will be reported as part of the Seals Sector activities.
Virginia Sealing was owned by Paul and David Malgee, together with minority shareholdings held by key members of the Executive management team. Following the deal, the Executive management team will remain with the business in their current roles.
Virginia, US.- based Virginia Sealing is a supplier of high-quality gaskets and fluid sealing products, as well as customised solutions, to the industrial MRO market. It has operations throughout the southern United States.
In the year 2018, Virginia Sealing reported revenues of 35.7 million pounds and profit before tax of 5.8 million pounds.
The company said it will fund the acquisition through existing cash resources and new debt facilities.
Johnny Thomson, Chief Executive Officer of Diploma PLC said, “The acquisition is consistent with our strategy and provides an exciting opportunity to extend our Seals activities in North America.”
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