Home
Distressed Businesses
  • All Distressed Businessess
  • Administrations
  • Liquidations
  • Winding Up
  • Insolvency Advice  New
Buy a Business
  • All Businesses for Sale
  • Find a Business for Sale
  • Raising Business Finance
  • Buyer Acquisition Service   New
  • Escrow Service   New
Sell a Business
  • Sell Your Business
  • List your Business
  • Seller Accounts
  • Need Help Selling?
  • Help With Finance New
  • Corporate Services  New
  • Business Valuation
  • Business Wanted Adverts
Insights & News
  • View All News
  • View All Insights
  • Exclusive Insights New
Lens
  • Search all UK Companies  New
Log in
Join Now

Home / News / Fluid power products firm acquired by listed group at 2.6x turnover

Fluid power products firm acquired by listed group at 2.6x turnover

Wed, 13 Apr 2022 | BUSINESS SALE



Preston-based R&G Fluid Power, a distributor of pneumatic, hydraulic and industrial products, has been acquired by London-headquartered listed group Diploma in a deal valued at approximately £100 million.

The reported deal value represents a 2.6x multiple of R&G’s turnover of around £38.4 million for the year ending December 31 2020, on which it registered gross profit of close to £18 million and post-tax profits of £1.3 million.

Over recent years, R&G has embraced a growth strategy encompassing both organic and acquisitive growth. Since commending trading in February 2017, the group has acquired 14 businesses, targeting complementary businesses with existing management teams in the UK’s fluid power industry.

Diploma, an international group of companies which supply specialised tech products and services, said the acquisition formed an “integral part” of its strategy, through which it targets “value-added businesses, with great management teams, to accelerate our organic growth”.

Describing R&G as a “high quality” addition, Diploma said that the group offered significant organic growth potential, such as developing the e-commerce side of its seals sector aftermarket distribution offering in the UK, driving revenue synergies with the existing UK seals business, regional expansion within the UK and product cross-selling.

Diploma adds that R&G has an active pipeline, meaning it is well positioned to to continue delivering acquisitive growth. Overall, Diploma expects R&G to contribute around £65 million in annualised revenue. Post-acquisition, R&G’s existing management team will remain in place.

R&G was advised on the sale by KPMG’s M&A team, led by UK Head of Corporate Finance Jonathan Boyers, alongside Rick Stark, Surinderpal Matharu and Matthew Dearden.

Jonathan Boyers commented: "R&G provide specialist fluid power products to businesses, and use their extensive technical knowledge to understand the needs of their customers."

"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."


Find businesses for sale here.

If you are looking for an exit, we can help!


Share this article



Latest Businesses for Sale

Manufacturing Firm Specialising in Adhesion Promotion Equipment
UK Wide

Well established highly profitable UK manufacturing firm specialising in the design and build of a range of bespoke and standard `Adhesion Promotion´ equipment and a comprehensive range of consumables spares and technical service. Operating from its...

Asking Price: Offers Invited
Turnover: £1,650,000

Manufacturer of Drapery and Prints
UK Wide

Well-established manufacturer of a comprehensive range of drapery and wide format digital fabric prints providing bespoke high-quality drapery to the theatre entertainment and arts industries. Operating from its workshop the company supplies curtains...

Asking Price: Offers Invited
Turnover: £800,000

Manufacturer of Kitchens & Fitted Furniture
UK Wide

Well-established kitchen and flat panel door manufacturer designing and producing a market-leading range of bespoke fitted furniture for kitchens bedrooms home studies and home cinemas. The company serves retail and trade and clients with an establis...

Asking Price: Offers Invited
Turnover: £1,049,000


View more businesses for sale

News Search

Latest News

 
27
 
May
 

Fragrances retailer Bodycare exploring potential sale amid high street decline | BUSINESS SALE

High street fragrances retailer Bodycare has reportedly enga...

 
26
 
May
 

DCJ Group targeting more acquisitions after SM Commercial takeover | BUSINESS SALE

Insurance and risk management firm DCJ Group, a part of Glob...

 
25
 
May
 

Can pre-pack administrations still play a central part in restructuring UK businesses? | BUSINESS NEWS

Despite proving a popular option when it comes to business r...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources

Become a Member

News Categories

  • - Business Sale
  • - Division Sale
  • - Administration
  • - MBO/MBI
  • - Merger
  • - Commercial Property

View all news


About Us

Business Sale Report is the UK's leading independent business for sale & distressed business listing service. Established in 1995, the report offers an up-to-the-minute, comprehensive overview of businesses for sale, latest distressed business listings and daily acquisition news.

Our Services

Businesses for Sale
Distressed Companies
List a Business
Help with Finance
Buyer Acquisition Service
Small Businesses for Sale

Company

About Us
Insights
News
FAQs
Reviews
Terms & Conditions
Privacy Policy

Get In Touch

020 8875 0200
[email protected]
167 Oakhill Road, London, SW15 2QW
Working hours: Mon-Fri, 9am - 5:30pm


Sign up to our free newsletter



© 1995-2022. Business Sale Report Ltd. All rights reserved. www.business-sale.com.