Diploma (LON: DPLM) share price rose over 20% today after the supplier of the technical products agreed to buy the US-based Windy City Wire for £357 million. The deal is expected to be completed in two months’ time.
The idea behind the deal is to increase the company’s presence in its core business, as well as expand its activities in the United States. Windy City Wire is a low voltage wire and cable supplier.
“In year one, the transaction is expected to be both significantly earnings enhancing and cover our cost of capital, while allowing us to maintain a conservative and flexible balance sheet to pay dividends and make further bolt-on acquisitions as opportunities arise,” said Diploma’s Chief Executive Johnny Thomson.
Interested in investing after today’s move?
XTB gives investors access to thousands of UK and international stocks,
including fractional shares from just £1.
Explore stocks with XTB →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to invest in the stocks making the news?
Go from following the market to investing in it, with access to thousands
of stocks across major UK and international markets.
See available stocks →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Own the stocks you’re reading about
Invest in real shares across the UK, US and other major global markets
through XTB, all from one investment account.
Explore XTB shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
You don’t need to buy a whole share
Fractional shares let you invest from just £1, giving you more control
over how much you put into individual companies.
Explore fractional shares →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
Want to see how XTB works first?
Explore the platform with an XTB demo account before deciding whether
you want to invest with real money.
Try the XTB demo →
Your capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.
In order to fund the purchase, Diploma announced a share placing yesterday. Moreover, the firm recommended a dividend payment of 30.0p per share for the full-year to September 30.
Diploma share price rose over 20% today to hit a 6-month high at 2052p.
PEOPLE WHO READ THIS ALSO VIEWED:
