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Diploma PLC on Thursday said it has acquired fluid power solutions distributor Distribuidora Internacional Carmen SAU for £170 million, as it confirmed its full-year guidance for growth in financial 2023. Diploma is a London-based supplier of specialised technical products and services. Distribuidora Internacional Carmen is European aftermarket fluid power solutions distributor. The firm said the acquisition will expand its established positions in the US and UK, and allow it to access key markets in mainland Europe, where Dicsa has strong exposure in Spain, France and Germany. Diploma also said Dicsa has a proven track record of double-digit organic growth, producing revenue of €87.7 million in 2022. On top of the £170 million consideration, a further £19 million is payable if Dicsa achieves stretch profit targets in 2024 and 2025. Diploma Chief Executive Johnny Thomson said: ‘We know and like the fluid power aftermarket model and DICSA satisfies a key strategic priority: accessing large European markets. The business is already generating strong performance and there are significant opportunities to enhance returns by working together across Europe, the UK and the US. This deal continues our strong track record of acquisitions that drive organic growth at great returns.’ In a separate announcement on Thursday, Diploma said it has seen organic revenue growth of 9% over the first nine months ending June 30. Reported revenue, which includes the contribution from eight bolt-on acquisitions made for a total of £26 million, rose by 21%, with an 8% contribution from acquisitions and disposals. Looking ahead, the firm said the first nine months of the year have improved its confidence in its full-year guidance. The firm expects organic revenue growth of 7%, as well as a 7% contribution from acquisitions. Diploma’s acquisition of Dicsa is expected to add 5% to earnings per share growth during the first full year of ownership, the company said. Diploma shares rose 3.8% to 3,078.00 pence each on Thursday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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