Diploma has acquired designer, distributor and manufacturer of seals and gaskets, PAR Group, for £38m.

The distributor of controls, seals and life sciences said that PAR Group has a "track record of excellent growth at strong margins", and will form part of its UK aftermarket business in the seals sector.

In the past year, PAR Group recorded annual revenue of £13m. Following the takeover, the group will be immediately margin and EPS accretive to Diploma.

Diploma said that the investment represents a seven times EBIT multiple in the 2024 financial year, with returns in the first year of acquisition well in excess of its cost of capital.

The announcement came alongside the news that Diploma had completed the acquisition of Peerless Aerospace, with the transaction completing on 1 May 2024.

As a result, the firm now operates as part of the group.

Chief executive at Diploma, Johnny Thompson, 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."

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