Halma buys corrosion monitoring firm RCS for $116m

2nd Jun 2014 07:27

Safety, health and environmental firm Halma has bought Rohrback Cosasco Systems (RCS), a US company that develops pipeline corrosion monitoring products, for $116m.The company paid $108m to RCS' private shareholders for the share capital, plus $8m for cash retained in the business.California-based RCS, which mad adjusted profits of $11m on revenues of $44m in 2013, designs and manufactures corrosion monitoring and chemical injection solutions for a variety of industries such as oil and gas, petrochemical, water treatment, chemical, pulp and paper, pharmaceutical, and utilities.The acquisition, said to be earnings enhancing straight away, "expands our portfolio of critical safety products which are sold into the energy and utility markets to protect life and operational assets", according to Halma's Chief Executive Andrew Williams."Our Process Safety sector has delivered strong organic growth over the past decade and RCS's international presence combined with potential technology collaboration with other Halma companies offers exciting new opportunities to sustain that success in the future," he said.The deal was funded using Halma's existing cash and debt facilities. Separately, Halma sold its Monitor Elevator Products division to Innovation Industries for $6m. After nearly 20 years under Halma ownership, Williams said the unit "no longer fits well with our global market-leading door safety sensor and display product business".BC