Diploma has announced that it is set to acquire Peerless Aerospace Fastener for £236m.

The British supplier of technical products and services said the acquisition of the New York-based distributor of specialty fasteners will expand its "capability in the US with an enhanced product offer and further penetrating key strategic markets in Europe".

Diploma suggested that aerospace fasteners, which are a critical component in aerospace engineering, represent a £5.5bn market.

Over one million fasteners can be found in an aircraft and there is currently a 10-year backlog for commercial aircraft manufacturing.

Diploma added that the "combination of new build and ongoing maintenance supports long-term market growth".

Over the last five years, Diploma has invested around £1bn to acquire 37 businesses, which have delivered a return on average tangible common equity of 16%.

In the 12 months to 30 September 2023, Peerless generated revenue of £85.4m and EBIT of £26.6m.

Chief executive at Diploma, Johnny Thompson, said: "Our new Peerless colleagues have created an exceptional value-add business with a very strong market reputation and I am delighted to welcome them to the group. We know and like the aerospace fasteners market and Peerless significantly extends our US capabilities and adds scale in Europe.

"The business is already generating strong performance and there are significant opportunities to enhance returns by working together across our existing businesses. We expect Peerless to extend our track record of acquisitions that drive organic growth at great returns, as part of our focus on continuing to deliver sustainable quality compounding."

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