Halma Acquires Tritech and System Technologies

Halma, the safety, health and sensor technology group, has announced the completion on 24 November 2006
of the acquisition of Tritech Holdings Limited ('Tritech') from R J Marsh and R K Wright for an initial cash consideration
of £8.0 million. Simultaneously, Halma completed the acquisition of Swift (943) Limited (trading as 'System Technologies'), Tritech's design and product manufacturing partner, from M St E Cardew, S E St E Cardew, J P N Trepte and A G Trepte for an initial consideration of £2.0 million.

Audited accounts for the year 2005, report revenues of £5.4 million if calculated on a consolidated basis and combined profits of £1.1 million. The combined net assets being acquired are approximately £4m including £1.3m cash. Unaudited accounts for the half-year to June 2006 indicate encouraging levels of growth with combined profits totalling £0.9 million after adjusting for non-recurring items.

Deferred purchase consideration of up to £4.5 million is payable to the vendors based on profit before tax for the periods ending November 2007 and November 2008 exceeding pre-determined targets.

The acquisition, which is immediately earnings enhancing in the current financial year, has been funded from Halma's existing cash and debt facilities.

Tritech, based in Aberdeen, UK, designs and manufactures underwater asset monitoring equipment serving, principally, the petrochemical and homeland security sectors. Their underwater positioning and sonar technology instruments are most often fitted to remotely operated vehicles with a variety of applications. These include underwater pipeline leak detection, pipeline inspection, underwater construction, infrastructure maintenance and diver, vessel and harbour protection. Tritech is a recipient of both the Queen's Award for Innovation and Export Achievement.

Andrew Williams, Halma's Chief Executive, commented "Tritech increases Halma's presence in the growing energy and homeland security markets bringing both new technologies and some which are complementary to our existing asset monitoring businesses. It is an excellent addition to our Industrial Safety business and broadens our future growth opportunities."

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Acquisition of Tritech and System Technologies

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Posted 29/11/06

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