Markets News

Diploma to buy Windy City Wire for U.S. expansion, resumes dividend

Sept 22 (Reuters) - Technical products and services provider Diploma said on Tuesday it will buy Windy City Wire Cable and Technology Products to extend its presence in the United States, and also resumed dividend payments.

The company said it will fund the deal, valued at up to 357 million pounds ($454.10 million), through a placement of up to 10% of Diploma’s share capital and with new debt facilities.

The deal with Windy City Wire, a U.S.-based wire and cable distributor, is expected to significantly enhance Diploma’s earnings from the first year.

Diploma, which had suspended its interim dividend in May, recommended a payment of 30 pence per share for the year ended Sept. ($1 = 0.7862 pounds) (Reporting by Tanishaa Nadkar in Bengaluru; Editing by Krishna Chandra Eluri)