When Johnny Thomson, the boss of Diploma, announced in September that he was spending £357m on an American acquisition, he was rewarded with a 27% bounce in the company’s shares.
The acquisition of Windy City Wire bought Diploma, which supplies technical products and services, greater clout in the US and propelled it to a valuation of more than £2.5bn. It was no surprise: Thomson had joined from the catering giant Compass, where he had been finance director, and had big ambitions after missing out on the top job there.
The deal was funded by £270m of new debt and an £194m equity raise, including £4m from retail investors. The hope is that it paves the way for Thomson (and Diploma) to reach the FTSE 100.