- Specialised technical products and services provider Diploma said Wednesday it had acquire FS Cables for up to £18.0m.

FS Cables, which includes Caplink Limited and FSC Global Limited, is based in St Albans, provides specialist electrical, data and communications cable products and solutions to a broad base of primarily UK-based customers.

Under the terms of the deal, Diploma agreed to fork out an initial cash payment of £17.0m, and a deferred payment of up to £1.0m based on FS Cables achieving aggregate earnings before interest and tax (Ebitda) in the year ending 31 October 2018.

The audited financial statements of Caplink Limited and unaudited financial statements of FSC Global Limited for the year ended 31 October 2017 reported aggregate profit before tax of £2.7m on aggregated revenues of £15.4m; aggregate profit before tax included about £0.3m of income from a property related company, which would cease on completion.

The transaction is expected to be immediately earnings enhancing to Diploma and be reported as part of the controls sector activities.

The sellers would remain with the business until 28 February 2019, to ensure a smooth management transition, Diploma said.

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