- Diploma said it had acquired Virginia Sealing Products for an initial consideration of £56m.

Virginia Sealing Products, or VSP, is a supplier of gaskets and fluid sealing products, as well as customised solutions, to the industrial MRO market.

The initial cash consideration, before acquisition costs, was £56.0m, subject to minor working capital adjustments and represents a multiple of about 9 times adjusted historic operating profit.

If VSP achieves certain operating profit targets, Diploma would pay a further deferred payment in late 2020 of up to a maximum of £8.0m.

The company said it expected this acquisition to be 'immediately earnings enhancing for the Group and will be reported as part of the Seals Sector activities.'

'We are delighted to welcome VSP into the Diploma Group. The business has an excellent management team, a strong service culture, and an impressive customer and supplier base. The acquisition is consistent with our strategy and provides an exciting opportunity to extend our Seals activities in North America,' it added.

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