Halma PLC Acquisition (5505H)

TIDMHLMA

RNS Number : 5505H

Halma PLC

16 November 2018

Halma, the leading safety, health and environmental technology group, today announces the acquisition of Navtech Radar Ltd., a provider of innovative radar surveillance and safety solutions for use in highway monitoring, perimeter security and industrial applications [see Note 1].

Navtech is based in Wantage, Oxfordshire, and will become part of the Group's Infrastructure Safety Sector. The existing management team will remain with the business.

The initial cash consideration is GBP21 million on a cash- and debt-free basis, funded from Halma's existing facilities. Further earn-out considerations, capped at a total of GBP18 million, are payable in cash, dependent on profit growth in each of the three financial years to the end of March 2021. Navtech's revenue in the year to 31 March 2018 was GBP6.2 million and the acquisition is expected to be immediately earnings enhancing.

Andrew Williams, Halma's Chief Executive, commented:

"Navtech is an exciting addition to our Infrastructure Safety business and builds on our existing strengths in sensing vehicles, people and assets for safety and control applications. It has valuable IP in radar-based hardware and software solutions and also adds a new presence in the fast growing highway and critical infrastructure safety market niches. As well as adding these new capabilities to the Group, I am confident that Navtech will benefit from all of Halma's strategic Growth Enablers, including International Expansion and Digital Growth, to accelerate and sustain growth in the future."

 
 For further information, please 
  contact: 
 Halma plc 
 Andrew Williams, Chief Executive    Switchboard: [phone] 
 Marc Ronchetti, Chief Financial 
  Officer 
 Charles King, Head of Investor      Mobile: [phone] 
  Relations 
  MHP Communications 
 Rachel Hirst/ Andrew Jaques         [phone] 
 

About Halma

Halma is a global group of life-saving technology companies, focused on creating a safer, cleaner and healthier future for people worldwide. Our innovative products and solutions address many of the key issues facing the world today. We operate in four sectors: Process Safety, Infrastructure Safety, Medical and Environmental & Analysis. We employ over 6,000 people in 20 countries, with major operations in Europe, the USA and Asia-Pacific. We target global niche markets where sustainable growth and high returns are supported by long-term drivers. Halma is listed on the London Stock Exchange and has been a member of the FTSE 100 index since December 2017.

Notes

1. Global demand in the highway market is increasing rapidly, driven by governments' focus on reducing road incidents by regulation mandating automated incident detection in road tunnels and by the new challenges created by smart motorways. In critical infrastructure, Navtech is addressing the increasing need for innovative, cost-effective and highly secure perimeter protection.

Further information on Navtech can be found on its website www.navtechradar.com

2. 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.

   3.    Halma results for the half year to 30 September 2018 will be issued on 20 November 2018. 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

ACQBABBTMBBBTLP

(END) Dow Jones Newswires

November 16, 2018 02:00 ET (07:00 GMT)