Diploma makes two acquisitions for up to £15.5m

Diploma said on Wednesday that it recently made two acquisitions in seals and life sciences for up to £15.5m.

The company bought DMR Seals in the UK for up to £7.5m and Sphere Surgical in Australia for as much as £8m.

DMR Seals is a distributor of bespoke machined seals and gaskets to original equipment manufacturers operating in a broad mix of industries, including oil & gas, chemicals, pharmaceuticals, food and heavy industry. The business employs 35 staff and operates from a leased facility in Sheffield.

In the year ended 30 April 2019, DMR Seals reported unaudited revenues of £3.8m and unaudited pre-tax profit of £0.8m.

Diploma said it complements the company’s existing UK seals businesses and will report into the FPE management team.

Sphere Surgical is a specialised distributor of bariatric surgical consumables supplied to both public and private hospitals in Australia and New Zealand. Diploma said there is a growing market for obesity products and Sphere’s gastric products complement its existing surgical product range in Australia.

In the year ended 30 June 2019, Sphere reported unaudited revenues of £2.8m (A$5.1m) and unaudited pre-tax profit of £1.0m (A$1.9m).

Sphere Surgical operates from Melbourne and will form part of Big Green Surgical.