Halma PLC Acquisition (6768D)

TIDMHLMA

RNS Number : 6768D

Halma PLC

21 February 2020

Halma, the leading safety, health and environmental technology group, today announces that it has acquired Maxtec, LLC, which is based in Utah, USA.

Maxtec is a leader in the design, manufacture and distribution of oxygen analysis and delivery products for use in medical and non-medical applications. They specialise in innovative products for respiratory care, including in oxygen sensors and analysers for use in hospital acute care units [see notes 1 and 2]. Maxtec will be managed as part of Halma's Perma Pure business, whose medical dehydration products are also used in acute care units, and will become part of Halma's Medical sector. Key members of Maxtec's leadership team will remain with the business and it will continue to operate in its current facility.

The cash consideration for Maxtec is US$20 million (GBP15.3 million(3) ), on a cash and debt free basis, which will be funded from Halma's existing facilities. Maxtec's revenue and Adjusted EBIT for the twelve months to the end of March 2019 were US$20.4 million (GBP15.7 million) and US$1.8 million (GBP1.4 million), respectively.

Andrew Williams, Group Chief Executive at Halma, commented:

"Maxtec is highly aligned with our purpose, and further extends our presence in diagnostic products and acute healthcare. It brings technology and a market presence that will accelerate Perma Pure's growth in medical moisture management products and adds a new niche in oxygen analysis and delivery products, where growth is being driven by ageing populations and the increasing prevalence of heart and respiratory conditions. I am delighted to welcome Maxtec to the Halma group of companies and look forward to supporting its future development."

 
For further information, please 
 contact: 
Halma plc 
Andrew Williams, Group Chief      Switchboard: [phone] 
 Executive 
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, Environmental & Analysis and Medical. 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 is a member of the FTSE 100 index.

Notes

1. The global market for anaesthesia and respiratory devices is estimated to grow from approximately US$21 billion in 2017 to approximately US$27 billion by 2022, representing a compound annual growth rate of approximately 5% for the period of 2017-2022. Anaesthesia equipment, in which Maxtec's sensors are used, represents approximately US$1.1 billion of this market and is growing at approximately 6%, while ventilators and oxygen concentrators represent US$1 billion and US$600 million respectively of the overall anaesthesia and respiratory devices market.

2. Maxtec is a leading company in oxygen analysis and delivery products, providing a full line of replacement oxygen sensors and SpO2 (peripheral capillary oxygen saturation) probes which help to measure oxygen delivery in critical healthcare settings such as hospital acute care units. Its products also include pulse oximeters, neonatal products and air-oxygen mixers, applicable to hospital, homecare and anaesthesia markets.

3. US Dollar (US$) values are translated throughout this announcement at a rate of US$1.30: GBP1.

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. For more information on Halma's Growth Enablers visit: https://www.halma.com/how-we-grow#page-intro-2 . For more information on Perma Pure visit: https://www.halma.com/our-companies/perma-pure-llc .

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

ACQTMMBTMTMTTAM

(END) Dow Jones Newswires

February 21, 2020 02:00 ET (07:00 GMT)