Technical services group Diploma snaps up cables company for £18m

Technical products and services provider Diploma PLC has snapped up cable business FS Cables for £18m.

The acquired company, comprising Caplink Limited and FSC Global Limited, employs a team of 62 at its base in St Albans.

It supplies specialist cable products to installers, end-users and wholesalers across industries including rail, marine and telecommunications.

In the year to October 31 2017, FS Cables generated a pre-tax profit of £2.7m against revenues of £15.4m.

Diploma has forecast the deal to be immediately earnings enhancing.

The £18m cost of the acquisition is made up of an initial cash consideration of £17m and a deferred payment of up to of £1m, dependent on FS Cables’ earnings before interest and tax in the year ending October 31 2018.

Diploma is based in Islington. The firm operates across three sectors – life sciences, seals and controls.

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