Halma PLC Acquisition (2200N)

TIDMHLMA

RNS Number : 2200N

Halma PLC

07 August 2017

Halma plc

Halma, the leading safety, health and environmental technology group, today announces two acquisitions within the Group's Medical sector: Cardios, a specialist in ambulatory blood pressure monitoring; and a range of non-invasive blood pressure devices from CAS Medical Systems Inc.

ACQUISITION OF CARDIOS SISTEMAS COMERCIAL E INDUSTRIAL LTDA AND CARDIO DINAMICA LTDA (together "Cardios")

Halma completed the acquisition of Cardios on 4 August 2017.

Cardios, located in São Paulo, Brazil, designs and manufactures ambulatory ECG recorders and ambulatory blood pressure monitors to Brazilian healthcare providers. These devices are used by cardiologists and general practitioners to diagnose and prevent heart and blood vessel related diseases like hypertension, diabetes, heart attacks, and heart arrhythmias. These products are similar or complementary to patient assessment devices currently manufactured and marketed by Halma's Medical sector.

The initial cash consideration is R$50 million (GBP12.1 million) and is adjustable, R$ for R$ if net assets are more or less than a pre-determined amount (the adjustment is not expected to be material). Further contingent consideration of up to R$5 million (GBP1.2 million) may be payable based on performance to 4 August 2018. Unaudited accounts for the year ended 31 December 2016 report revenue of R$25.1 million (GBP6.1 million).

The CEO and management team of Cardios will continue to operate the business out of its current location.

ACQUISITION OF CAS MEDICAL SYSTEMS, INC'S (CASMED) NON-INVASIVE BLOOD PRESSURE MONITORING PRODUCT LINE (CASMED NIBP)

Halma's Medical sector subsidiary, SunTech Medical Inc (SunTech) completed the purchase of CASMED NIBP on 25 July 2017.

These new NIBP monitoring products provide SunTech with more clinical grade options for OEM customers seeking NIBP technology for multi-parameter monitors, EMS defibrillators, haemodialysis machines and various other clinical monitoring devices.

The initial cash consideration for CASMED NIBP was $4.5 million (GBP3.4 million) with up to a further $2 million (GBP1.5 million) payable based on the achievement of certain sales criteria through to June 2019. SunTech will also purchase related product inventory from CASMED at the end of a short transition period.

Unaudited accounts for the year to 31 December 2016 report revenue of $3.6 million (GBP2.7 million) from CASMED NIBP.

Both acquisitions, which are expected to be immediately earnings enhancing, were funded from Halma's existing cash and debt facilities.

Andrew Williams, Halma's Chief Executive, commented:

"Cardios and CASMED NIBP are great examples of how Halma can strengthen both the geographic footprint and intellectual property of our existing businesses through acquisition. Cardios extends our Medical sector's reach further into developing international markets such as Brazil, where demand for and access to healthcare continues to grow, while CASMED NIPD strengthens SunTech's position as the world leader in OEM non-invasive blood pressure technology."

For further information please contact:

Halma plc

Tel: [phone]

Andrew Williams, Chief Executive

Kevin Thompson, Finance Director

MHP Communications

Tel: [phone]

Rachel Hirst/Andrew Jaques

Notes

1. Halma buys successful businesses in safety, health and environmental markets and helps them grow further through investment targeted towards increasing innovation, management development and international expansion. In the past 10 years Halma has spent approximately GBP650 million acquiring nearly 30 businesses with deal sizes ranging from GBP1 million up to GBP100 million. (www.halma.com)

   2.    Further information on Cardios can be found on its website www.cardios.com.br. 

3. Further information on the non-invasive blood pressure monitoring product line can be found on SunTech Medical's website www.suntechmed.com. SunTech is the world's largest supplier of OEM advanced blood pressure monitoring products and technology for customers and patients.

4. This statement is not intended to constitute a profit forecast for the current financial period or for any future period. In addition, 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.

5. Halma intends to issue a trading update on 27 September 2017 ahead of its half year end of 30 September 2017.

   6.    Brazil Real values were translated at a rate of R4.1265: GBP1. 
   7.    US $ values were translated at a rate of $1.31: GBP1. 

This information is provided by RNS

The company news service from the London Stock Exchange

END

ACQPFMMTMBAMTAR

(END) Dow Jones Newswires

August 07, 2017 02:00 ET (06:00 GMT)