Halma makes three acquisitions, offloads Texecom

Technology company Halma has completed three acquisitions for a total consideration of £48.8m, it announced on Monday, and completed the sale of Texecom for £65m.

The FTSE 100 company said the three acquisitions spanned two of the three sectors in which it already operates, being safety, environmental and analysis, and medical, and had total reported revenue of £20.5m in the year ended 31 March, and £23.3m in the year ended March 2020, before the full effects of the Covid-19 pandemic were felt.

It said their combined profitability was within Halma's target range of a return on sales of 18% to 22%.

In the safety sector, Halma said it had acquired the Ramtech group of companies for £15.5m in cash, on a cash- and debt-free basis.

Ramtech is based in Nottingham, and supplies wireless fire systems for temporary sites, primarily in the construction markets.

Its audited revenue for the year ended 31 March was £9.3m.

In the environmental and analysis sector, the company had made two acquisitions, with its existing pipeline inspection systems business Mini-Cam acquiring Dancutter - a Danish designer and manufacturer of trenchless pipeline rehabilitation equipment - for cash consideration of €18m (£15.4m) on a cash- and debt-free basis.

Dancutter's unaudited revenue for the year ended 31 March was €4.6m.

It also acquired Sensitron, a gas detection company based in Milan, for €21m in cash, on a cash- and debt-free basis.

Sensitron's devices, which include detectors for hazardous locations and for refrigerant gases, enhance safety and detect the release of gases harmful to people and the environment.

That company reported unaudited revenue of €8.5m for the year ended 31 March 2021.

On the completed sale of Texecom for total cash of £65m on a cash- and debt-free basis, Halma said the management buyout was supported by LDC, a UK based mid-market private equity investor.

Texecom is a provider of electronic security systems, and is based in Lancashire, with its existing management set to continue leading the business, and operate out of its current locations.

Halma acquired Texecom in November 2005 for total cash of £26m, with a gain to be recognised on disposal.

In the financial year ended 31 August 2005, Texecom reported revenue of £19.2m, and for the financial year ended 31 March 2020 it reported revenue of £39.9m, followed by audited revenue of £33.3m in the most recent financial period through March 2021.

“I am pleased that we have continued to find exciting new companies to join Halma,” said group chief executive officer Andrew Williams.

“Each acquisition is strongly aligned with our purpose and financial model and will bring complementary capabilities including new technologies and broader market reach.

“We look forward to working with the leadership groups of Ramtech, Dancutter and Sensitron as they seek to grow their businesses over the long term.”

Williams added that it was “pleasing” to have found a new home for Texecom under its existing management team.

“We wish them and the whole Texecom workforce every success for the future under their new ownership.”

At 0832 BST, shares in Halma were down 0.79% at 2,877p.