Halma PLC (LSE:HLMA) (LSE:HLMA) announced a flurry of corporate activity, completing three acquisitions for a total of £48.8mln and the sale of Texecom Ltd for £65mln in cash.
Halma said the acquisitions had an aggregate reported revenue of about £20.5mln in the year to end March 2021. Their combined profitability is within Halma's target range of 18%-22% return on sales, it said.
Halma operates in three sectors - Safety, Environmental & Analysis and Medical.
In the Safety sector, Halma acquired the Ramtech group of companies for £15.5mln in cash. UK-based Ramtech supplies wireless fire systems for temporary sites, primarily in the construction industry.
In the Environmental & Analysis sector, Halma bought Dancutter A/S, a Danish designer and manufacturer of trenchless pipeline rehabilitation equipment, for €18mln in cash and Sensitron S.r.l., a Milan-based gas detection company for €21mln, also in cash.
All three of the companies were acquired on a debt-free basis.
"I am pleased that we have continued to find exciting new companies to join Halma,” said Andrew Williams, group chief executive at Halma. “Each acquisition is strongly aligned with our purpose and financial model and will bring complementary capabilities including new technologies and broader market reach.”
On the disposal side, Halma completed the sale of Texecom, a provider of electronic security systems, to the current management team supported by LDC, a UK-based mid-market private equity investor.
“It is also pleasing to have found a new home for Texecom, so that it can continue to invest and grow under the existing management team, who have served Halma well over many years,” Williams added. “We wish them and the whole Texecom workforce every success for the future under their new ownership."
Texecom was acquired by Halma in November 2005 for £26.0mln in cash.