60 DEALMAKERS
Buy to build has played a central part in the growth of a Preston based group of companies specialising in industrial, hydraulic and pneumatic products.
Since 2017, R&G Fluid Power has built up network of businesses through a series of acquisitions, targeting complementary companies.
It now finds itself part of a listed company, after it was acquired by an international distribution group with its own ongoing growth strategy. The value of the deal is around £100m.
R&G supplies items such as industrial hoses and couplings, hydraulics, gaskets and related sealings and pneumatics for industries including chemical and petrochemical, power generation, food, pharmaceuticals and agriculture.
BUILDING UP THEIR STRENGTH The R&G historic growth track
Diploma says that R&G also has “significant organic growth potential” as well as an “active pipeline” that positions it well to continue to add businesses to the group.
R&G, based on Roman Way on the outskirts of Preston, has already been active in the market itself this year, announcing three acquisitions, including a leading supplier of industrial rubber, PVC and polyurethane associated products and a specialist in hydraulics.
record, organic and inorganic, has been impressive
Diploma, a London-based specialised technical products and services company listed on the FTSE 250, said the acquisition formed an “integral part” of its strategy which focuses on “value-added businesses, with great management teams, to accelerate our organic growth.”
In a trading update it added: “The R&G historic growth track record, organic and inorganic, has been impressive.”
Jonathan Boyers, head of corporate finance for KPMG, who advised R&G on the sale to Diploma, said: “They have proven to be highly adept at expanding through strategic buy and build, and this deal represents another example of the attractiveness of businesses that have demonstrated resilience, particularly during challenging times.”
SOLVING BUSINESS OBJECTIVES
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