Diploma PLC on Friday said that it has raised gross proceeds of £235 million through a placing of 9.3 million shares at 2,525 pence each.

The London-based group, which supplies specialised technical products and services, placed the shares with institutional investors Barclays Bank PLC and Numis Securities Ltd.

Each of the directors have subscribed for an aggregate of 3,960 new shares, the proceeds of which will be £100,000. Retail investors have separately subscribed for a total of 50,000 new shares, raising gross proceeds of £1 million.

Diploma on Thursday said it acquired Tennessee Industrial Electronics LLC, a Nashville-based aftermarkets parts distributor, for £76 million.

The proceeds of the capital raise will be used to refinance the acquisition of Tennessee Industrial Electronics, as well as provide the company with ‘greater flexibility’ to execute on its mergers & acquisitions pipeline to accelerate future organic growth, Diploma said.

Diploma shares were trading 2.3% higher at 2,696.00 pence each in London on Friday morning. The company has a market capitalisation of £3.36 billion.

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