Diploma PLC Acquisition (7823C)
20 April 2017 - 4:00PM
UK Regulatory
TIDMDPLM
RNS Number : 7823C
Diploma PLC
20 April 2017
DIPLOMA PLC
12 CHARTERHOUSE SQUARE, LONDON EC1M 6AX
TELEPHONE: +44 (0)20 7549 5700
FACSIMILE: +44 (0)20 7549 5715
FOR IMMEDIATE RELEASE
20 April 2017
DIPLOMA PLC ACQUIRES ABACUS ALS PTY LTD
FOR MAXIMUM CONSIDERATION OF GBP15.7m (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. GBP13.6m (A$22.6m) and the audited profit before tax was ca.
GBP1.5m (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. GBP1.8m
(A$3m). Audited gross assets at 30 June 2016 were GBP5.6m
(A$9.2m).
The initial cash consideration, including net debt acquired but
before acquisition costs, is GBP13.6m (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 GBP2.1m (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 - +44 (0)20 7549 5700
Bruce Thompson, Chief
Executive Officer
Nigel Lingwood, Group
Finance Director
Tulchan Communications
- +44 (0)20 7353 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 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. GBP1.2bn.
Further information on Diploma PLC is available at
www.diplomaplc.com
LEI: 213800OG17VYG8FGR19
This information is provided by RNS
The company news service from the London Stock Exchange
END
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