TIDMHLMA
RNS Number : 9295H
Halma PLC
09 August 2021
Halma plc ('Halma')
M&A Update
Halma, the global group of life-saving technology companies
focused on growing a safer, cleaner and healthier future, is
announcing that it has recently completed three acquisitions for a
total consideration of GBP48.8 million (including any deferred
consideration), and that it has completed the sale of Texecom
Limited ("Texecom") for a consideration of GBP65 million. These
actions demonstrate Halma's strategy of actively managing its
portfolio of global businesses to be aligned with the Group's
purpose and to maintain strong growth and returns over the long
term.
Acquisitions
Halma operates in three sectors - Safety, Environmental &
Analysis and Medical - which are aligned to its purpose. The
acquisitions, which span two of these three sectors, had an
aggregate reported revenue of approximately GBP20.5 million in the
year ended 31 March 2021 and GBP23.3 million in the year ended 31
March 2020. Their combined profitability is within Halma's target
range of 18%-22% Return on Sales.
In the Safety sector, Halma has acquired the Ramtech group of
companies ("Ramtech"), for a cash consideration of GBP15.5 million,
on a cash and debt free basis. Ramtech is headquartered in
Nottingham, UK and supplies wireless fire systems for temporary
sites, primarily in the construction markets. Ramtech's audited
revenue for the year ended 31 March 2021 was GBP9.3 million.
In the Environmental & Analysis sector, there have been two
acquisitions. Halma's pipeline inspection systems business,
Mini-Cam, has acquired Dancutter A/S ("Dancutter"), a Danish
designer and manufacturer of trenchless pipeline rehabilitation
equipment for a cash consideration of EUR18 million (GBP15.4
million(1) ), on a cash and debt free basis. Dancutter's unaudited
revenue for the year ended 31 March 2021 was EUR4.6 million (GBP3.9
million(1) ).
Halma has also acquired Sensitron S.r.l. ("Sensitron"), a gas
detection company based in Milan, Italy, for a cash consideration
of EUR21 million (GBP17.9 million(1) ), on a cash and debt free
basis. Sensitron's devices, which include detectors for hazardous
locations and for refrigerant gases, enhance safety and detect the
release of gases harmful to people and the environment. Sensitron
reported unaudited revenue of EUR8.5 million (GBP7.3 million(1) )
in the year ended 31 March 2021.
Disposal of Texecom
Halma has completed the sale of Texecom for a total cash
consideration of GBP65 million on a cash and debt free basis in a
management buyout supported by LDC, a UK based mid-market private
equity investor. Texecom is a provider of electronic security
systems, and is headquartered in Lancashire, UK. Texecom's
management team will continue to lead the business, which will
operate out of its current locations.
Texecom Limited was acquired by Halma in November 2005 for a
total cash consideration of GBP26.0 million. A gain will be
recognised on disposal. In the financial year ended 31 August 2005,
Texecom reported revenue of GBP19.2 million. In the financial year
ended 31 March 2020 it reported revenue of GBP39.9 million, and in
the financial year ended 31 March 2021 it reported audited revenue
of GBP33.3 million.
Texecom's management team will continue to build on its
market-leading position and international presence through
developing new products, enhancing its digital services and
exploring complementary acquisitions.
Andrew Williams, Group Chief Executive at Halma, commented:
"I am pleased that we have continued to find exciting new
companies to join Halma. Each acquisition is strongly aligned with
our purpose and financial model and will bring complementary
capabilities including new technologies and broader market reach.
We look forward to working with the leadership groups of Ramtech,
Dancutter and Sensitron as they seek to grow their businesses over
the long term.
It is also pleasing to have found a new home for Texecom, so
that it can continue to invest and grow under the existing
management team, who have served Halma well over many years. We
wish them and the whole Texecom workforce every success for the
future under their new ownership."
For further information, please contact:
Halma plc
Andrew Williams, Group Chief Executive +44 (0)1494 721111
Marc Ronchetti, Chief Financial Officer
Charles King, Head of Investor Relations +44 (0) 7776 685948
Clayton Hirst, Director of Corporate Affairs +44 (0) 7384 796
013
MHP Communications
Andrew Jaques / Rachel Farrington +44 (0)20 3128 8613
A copy of this announcement, together with other information
about Halma, may be viewed on its website: www.halma.com
About Halma
Halma is a global group of life-saving technology companies,
focused on growing a safer, cleaner, healthier future for everyone,
every day.
Its purpose defines the three broad market areas where it
operates:
-- Safety: protecting life as populations grow and protecting worker safety.
-- Environment: improving food and water quality, and monitoring air pollution.
-- Health: meeting rising healthcare demand as growing populations age and lifestyles change.
It employs over 7,000 people in more than 20 countries, with
major operations in the UK, Mainland Europe, the USA and Asia
Pacific. Halma is listed on the London Stock Exchange (LON: HLMA)
and is a constituent of the FTSE 100 index.
In January 2021, Halma was named Britain's Most Admired Company
by Management Today.
Notes:
1. At an exchange rate of GBP1 : EUR1.17.
2. Houlihan Lokey Capital, Inc. served as exclusive financial
advisor to Halma in respect of the disposal of Texecom.
END
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