Halma PLC Acquisition (4439N)

TIDMHLMA

RNS Number : 4439N

Halma PLC

18 January 2019

Halma, the leading safety, health and environmental technology group, today announces the acquisition of Business Marketers Group Inc., trading as Rath Communications, a provider of emergency communication systems for Areas of Refuge in the USA. [see notes 1 and 2].

Rath is based in Wisconsin, USA, and will become part of the Group's Infrastructure Safety Sector. The cash consideration for Rath of US$42.4 million (GBP32.6 million)(3) , on a cash and debt free basis, was funded from Halma's existing facilities. The acquisition was completed on 17 January 2019 and is expected to be immediately earnings enhancing. Rath's unaudited revenue for the financial year ended December 2018 was US$15.9 million (GBP12.2 million)(3) .

Andrew Williams, Halma's Chief Executive, commented:

"Rath extends Halma's safety communications capabilities and adds a new market niche with its strong position in the Area of Refuge communications market in the USA, where growth is being supported by tightening regulatory standards. Rath is also well positioned to benefit from Halma's strategic Growth Enablers, bringing the potential for collaboration with other Halma businesses in elevator safety and healthcare to drive expansion into adjacent markets focused on the care and safety of the elderly and disabled people. We look forward to working with Rath's management team and continuing its strong track record of growth."

 
 For further information, please 
  contact: 
 Halma plc 
 Andrew Williams, Chief Executive    Switchboard: +44 (0)1494 721111 
 Marc Ronchetti, Chief Financial 
  Officer 
 Charles King, Head of Investor      Mobile: +44 (0)7776 685948 
  Relations 
  MHP Communications 
 Rachel Hirst/ Andrew Jaques         +44 (0)20 3128 8156

About Halma

Halma is a global group of life-saving technology companies, focused on creating a safer, cleaner and healthier future for people worldwide. Our innovative products and solutions address many of the key issues facing the world today. We operate in four sectors: Process Safety, Infrastructure Safety, Medical and Environmental & Analysis. We employ over 6,000 people in 20 countries, with major operations in Europe, the USA and Asia-Pacific. We target global niche markets where sustainable growth and high returns are supported by long-term drivers. Halma is listed on the London Stock Exchange and has been a member of the FTSE 100 index since December 2017.

Notes

1. An Area of Refuge (AOR) is a location in a building designed to hold occupants during a fire or other emergency, when evacuation may not be safe or possible. In the USA, the two-way emergency communication systems market for AORs and public infrastructure is growing rapidly. This growth is being driven by regulation in building and elevator safety, including the International Building Code, which requires a two-way communication system in all new public and commercial buildings on each floor above or below the storey of exit. In addition, there is increasing demand for robust communication solutions to ensure safety in public spaces, such as university campuses, parking garages, transit hubs, and open spaces such as parks and trails.

2. Rath operates in the following market segments: Area of Refuge communications, enabling disabled and elderly people to call for help from multi-storey buildings; Elevator Phones; and Public Safety phones (vandal proof phones). Rath has also recently entered the growing market for bedside communication systems in nursing homes with its Nurse Call products. Further information on Rath can be found on its website www.rathcommunications.com

   3.    US$ values are translated at a rate of US$1.30: GBP1.

4. This statement is not intended to constitute a profit forecast for the current financial period or for any future period. In addition, this statement should not be taken to mean that the earnings per share of Halma will necessarily match or exceed the historic reported earnings per share of Halma.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

ACQBRMMTMBBBTML

(END) Dow Jones Newswires

January 18, 2019 02:00 ET (07:00 GMT)

Halma (LSE:HLMA)
Historical Stock Chart
From Oct 2024 to Nov 2024