06 October 2015

Halma, the leading safety, health and environmental technology group (the 'Group'), announces it has acquired Firetrace USA, LLC ('Firetrace'), from private shareholders.

Firetrace (www.firetrace.com), based in Scottsdale, Arizona, USA, designs and manufactures automatic fire detection and suppression systems for installation in small enclosed environments to protect people and critical assets. It will continue to operate out of its current facilities and existing management will remain in place.

Audited accounts for the year to 31 December 2013 report revenue of $28.8 million (£19.1 million) and profit before tax of $4.2million (£2.8 million). Audited accounts for the year to 31 December 2014 report revenue of $49.2 million (£32.6 million) and profit before tax of $18.1 million (£12.0m). The variation in revenue and profitability between the last two years' trading is substantially due to a large contract, worth $20 million in revenue terms, which completed shipping in 2014.

Under Halma ownership, profitability is expected to be above the Group's average return on sales. Unaudited accounts for the 8 months to the end of August 2015 show revenue of $23 million (£15.2 million).

The cash consideration is $110.0 million (£72.8 million) and is adjustable, US$ for US$ if net assets are more or less than a pre-determined amount. The acquisition, which is expected to be immediately earnings enhancing, was funded from Halma's existing cash and debt facilities.

Firetrace will become part of the Infrastructure Safety sector which includes global leaders in the design and manufacture of flame and smoke detectors, fire detection systems, security sensors and audible/visual warning devices.

Andrew Williams, Halma's Chief Executive, commented:

'Firetrace further extends Halma's product offering within the fire protection industry, adding fire suppression to our market leading fire detection capabilities. This transaction also demonstrates our ability to continue to find and acquire high quality businesses, with complementary technologies, operating within our existing market sectors.'

For further information please contact:

Halma plc
 Tel: +44 (0)1494 721111
Andrew Williams, Chief Executive
Kevin Thompson, Finance Director

MHP Communications
 Tel: +44 (0)20 3128 8100
Rachel Hirst / Andrew Jaques

Notes:

  1. Gross assets at the end of December 2014 were $25.3 million (£16.8 million).
  2. 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 over £550 million acquiring more than 30 businesses with deal sizes ranging from less than £1 million to £75 million.
  3. 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.
  4. Halma's Half-Year results for the 27 weeks ended 3 October 2015 will be issued on 17 November 2015.
  5. US dollar values were translated at a rate of $1.51: £1.
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