Diploma (LON:DPLM) the international group supplying specialised products and services, has today announced the recent acquisitions of DMR Seals in the UK and Sphere Surgical in Australia.
DMR Seals will report as part of the Seals Sector and Sphere Surgical will report as part of the Life Sciences Sector. Both acquisitions will be immediately earnings enhancing for the Group. Consideration for both acquisitions has been funded from the Group’s existing cash resources.
DMR Seals
The Group has acquired 100% of DMR Seals (Holdings) Ltd and DMR Gaskets Ltd (“DMR Seals”) for an initial consideration of £6.9m and a maximum consideration of £7.5m.
DMR Seals is a well-established UK distributor of bespoke machined seals and gaskets to OEMs operating in a broad mix of industries, including oil & gas, chemicals, pharmaceuticals, food and heavy industry. DMR Seals employs 35 staff and operates from a leased facility in Sheffield. The business complements our existing UK Seals businesses and will report into the FPE management team.
In the year ended 30 April 2019, DMR Seals reported unaudited revenues of £3.8m, and operating profit of £0.9m, after normalisation adjustments. Unaudited profit before tax was £0.8m.
Sphere Surgical
The Group has acquired 100% of Sphere Surgical Pty Ltd (“Sphere Surgical”) for an initial consideration of £6.6m (A$12.0m) and maximum consideration of £8.0m (A$14.5m).
Sphere Surgical is a specialised distributor of bariatric surgical consumables supplied to both public and private hospitals in Australia and New Zealand. There is a growing market for obesity products and Sphere Surgical’s gastric products complement our existing surgical product range in Australia. Sphere Surgical operates from Melbourne and will form part of Big Green Surgical.
In the year ended 30 June 2019, Sphere Surgical reported unaudited revenues of £2.8m (A$5.1m) and operating profit of £1.0m (A$1.9m). Unaudited profit before tax was also £1.0m (A$1.9m).
