LONDON: Diploma PLC, the international value-add distribution group, has acquired PAR Group (PAR) for ca. £38 million.
PAR Group is a UK-based, family-owned supplier of specialist seals and gaskets into a broad range of end markets. Its value-add customer proposition has driven a track record of excellent growth at strong margins. It will form part of our UK Aftermarket business in the Seals Sector, adding scale to R&G’s Seal & Gaskets division.
With annual revenue of ca. £13m, PAR will be immediately margin and EPS accretive to the Group. The investment represents a ca. 7x FY24 EBIT multiple, with returns in the first year of acquisition well in excess of our cost of capital.
Since the acquisition of R&G in April 2022, eight high-quality, complementary businesses have been added, contributing to strong organic growth of ca. 10% CAGR and supporting excellent margin progress.
In addition, following the announcement of the acquisition of Peerless Aerospace LLC on 27 March, the transaction completed on 1 May 2024 and it is now operating as part of the Group.
Johnny Thomson, Diploma’s Chief Executive said: “I’m delighted to welcome our new PAR colleagues to Diploma, bringing another highly complementary, quality business into the Group. PAR has an excellent customer-proposition with clear value-add. It’s a fantastic addition to R&G: building capability; further diversifying the customer base; and expanding end markets.”