FTSE 250 technical products supplier Diploma snaps up FS Cables in £18m deal
FTSE 250 technical services firm Diploma today snapped up a pair of businesses in a deal which it says will be immediately earnings enhancing.
The company has bought FS Cables, which comprises Caplink and FSC Global, for around £18m.
St Albans-based FS Cables supplies cable products to installers, end users and wholesales in a range of industries such as electrical contracting, home automation as well as the rail, marine and telecommunications sectors.
The sellers will remain in place until next February to ensure a smooth transition.
Overall, FS Cables brought in around £2.7m before tax profit last year, with revenues of around £15.4m. It has gross assets of £17.5m, including £6.1m cash and £3.4m in property related assets.
In a note, City broker Peel Hunt said it expected the impact of the acquisition on the firm's numbers to be "minimal".