Acquisition

27th Nov 2006 08:55

Halma PLC27 November 2006 Halma p.l.c. ('Halma') ACQUISITION OF TRITECH and SYSTEM TECHNOLOGIES Halma, the leading safety, health and sensor technology group, announces thecompletion on 24 November 2006 of the acquisition of Tritech Holdings Limited('Tritech') from R J Marsh and R K Wright for an initial cash consideration of£8.0 million. Simultaneously, Halma completed the acquisition of Swift (943)Limited (trading as 'System Technologies'), Tritech's design and productmanufacturing partner, from M St E Cardew, S E St E Cardew, J P N Trepte and A GTrepte for an initial consideration of £2.0 million. Audited accounts for the year 2005, report revenues of £5.4 million ifcalculated on a consolidated basis and combined profits of £1.1 million. Thecombined net assets being acquired are approximately £4m including £1.3m cash.Unaudited accounts for the half-year to June 2006 indicate encouraging levels ofgrowth with combined profits totalling £0.9 million after adjusting for non-recurring items. Deferred purchase consideration of up to £4.5 million is payable to the vendorsbased on profit before tax for the periods ending November 2007 and November2008 exceeding pre-determined targets. The acquisition, which is immediately earnings enhancing in the currentfinancial year, has been funded from Halma's existing cash and debt facilities. Tritech, based in Aberdeen, UK, designs and manufactures underwater assetmonitoring equipment serving, principally, the petrochemical and homelandsecurity sectors. Their underwater positioning and sonar technology instrumentsare most often fitted to remotely operated vehicles with a variety ofapplications. These include underwater pipeline leak detection, pipelineinspection, underwater construction, infrastructure maintenance and diver,vessel and harbour protection. Tritech is a recipient of both the Queen's Awardfor Innovation and Export Achievement. Andrew Williams, Halma's Chief Executive, commented "Tritech increases Halma'spresence in the growing energy and homeland security markets bringing both newtechnologies and some which are complementary to our existing asset monitoringbusinesses. It is an excellent addition to our Industrial Safety business andbroadens our future growth opportunities." For further information please contact: Halma p.l.c. +44 (0)1494 721111Andrew Williams, Chief ExecutiveKevin Thompson, Finance Director Hogarth Partnership Limited +44 (0)20 7357 9477Rachel Hirst/Andrew Jacques Notes 1. A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com. 2. 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 and no forecast is intended or implied. This information is provided by RNS The company news service from the London Stock Exchange

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