Halma makes double acquisition

15th May 2014 12:26

Halma, the hazard detection and life protection group, has completed two acquisitions, which it said add important new capabilities to its Infrastructure Safety and Medical sectors.The most recent transaction of the two, Advanced Electronics, manufactures networked fire detection and control systems that can be integrated into system solutions. The acquisition, which is expected to be immediately earnings enhancing, was made for an initial cash consideration of £14.1m, with a deferred consideration of up to £10.1m payable based upon earnings growth for the period to March 2015. For the year ended April 30th 2014 the group reported revenue of £14.6m. Its main manufacturing facility is located near Newcastle in the UK and it has additional commercial offices in the UK, US and Dubai.Andrew Williams, Halma's Chief Executive, said: "Advanced complements Halma's existing Fire business and reinforces our focus on growth in international markets, where fire system product approval regimes are becoming increasingly more challenging to navigate successfully."The second acquisition, completed at the beginning of the month, was Plasticspritzerei, a Swiss manufacturer of plastic components. It is located at the same facility as Medicel AG, with which it has been a close commercial partner since Medicel's inception. The firm's 2013 revenue totalled £2.4m and is expected to be immediately earnings enhancing. Both were funded from Halma's cash and debt facilities. "Plasticspritzerei's acquisition secures important production IP, enabling Medicel to maintain and grow its already strong position in the cataract surgical device market. This transaction is another example of Halma finding valuable strategic bolt-on acquisitions to sustain long-term success," Williams added. NR