15th May 2014 08:59
LONDON (Alliance News) - Technology company Halma PLC Thursday said it had bought a fire detection and control systems company and the Switzerland-based manufacturer of plastic components for one of its subsidiaries, deals that will bolster its fire business and give it important production intellectual property.
The maker of technology for the health, safety and environmental markets said it has bought Newcastle-based fire detection systems business Advanced Electronics Ltd for an initial cash payment of GBP14.1 million and deferred payments of up to GBP10.1 million depending on earnings growth up to March 2015.
The acquired business, which made revenue of GBP14.6 million in the year to April 30, has its manufacturing base in the UK, and offices in the UK, US and Dubai. Its existing management will remain in place, Halma said.
"The acquisition, which is expected to be immediately earnings enhancing, has been funded from Halma's cash and debt facilities," it said.
The acquisition of Switzerland-based Plasticspritzerei was a different type of deal, securing a business providing critical parts for Halma's Medicel AG subsidiary. Plasticspritzerei and ophthalmic products maker Medicel share the same plant in Wolfhalden.
Halma paid CHF8 million, or GBP5.4 million, for Plasticspritzerei, including CHF0.3 million of cash. It then immediately sold the industrial business to an unnamed third party for a cash cost of CHF4.8 million, or GBP3.2 million, leaving it with just the assets that support Medicel's business.
"Plasticspritzerei's acquisition secures important production IP, enabling Medicel to maintain and grow its already strong position in the cataract surgical device market," Halma Chief Executive Andrew Williams said in a statement.
Halma shares were down 0.7% at 582 pence Thursday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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