REG - Halma PLC - Acquisition <Origin Href="QuoteRef">HLMA.L</Origin>

HalmaAnnouncement

05/02/2016 07:10

RNS Number : 1591O
Halma PLC
05 February 2016
Halma plc
5 February 2016
ACQUISITION OF CENTRAK
Halma, the leading safety, health and environmental technology group, announces that it has acquired CenTrak, Inc. ("CenTrak") based in Newtown, Pennsylvania, USA from private shareholders.
CenTrak designs and manufactures sensors and proprietary communication technology that provide the most reliable and precise location data for healthcare facilities to ensure compliance with regulations and to improve patient care. Through strategic partnerships with leading healthcare application providers, CenTrak's technology enables real-time monitoring of a range of parameters including patient, staff and medical equipment location, patient security, hand hygiene compliance and environmental/temperature conditions. 
The cash consideration is $140 million (95.9 million) and is adjustable, US$ for US$ if net assets are more or less than a pre-determined amount (the adjustment is not expected to be material). The acquisition, which is expected to be immediately earnings enhancing, was funded from Halma's existing cash and debt facilities.
Unaudited accounts for the year ended 31 December 2015 report revenue (excluding net deferred income) of $43.8 million (30.0 million) and profit before tax of $10.2 million (7.0 million). The net deferred income in 2015, which will be recognised in future periods, was $6.6 million (4.5 million). 
The CenTrak CEO and management team will continue to operate the business out of its current locations. 
CenTrak will be part of Halma's Medical sector which includes a range of healthcare device companies serving niche applications in global markets. 
Andrew Williams, Halma's Chief Executive, commented:
"CenTrak is an exciting addition to our Medical sector. It has a range of sensor and communication technologies which are very similar to those used by other Halma companies in our Infrastructure Safety and Environmental & Analysis sectors, but with a clear focus on medical and healthcare applications. We are looking forward to working with CenTrak's management team towards delivering their growth strategy which includes further market penetration in the USA, international expansion and, in the longer term, potential new applications in other Halma 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. 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 approximately 650 million acquiring more than 30 businesses with deal sizes ranging from 1 million up to 100 million. (www.halma.com)
2. CenTrak has been named one of Deloitte's 500 Fastest Growing Companies in North America in each of the last three years. Their innovative technology has been installed at over 600 healthcare facilities worldwide including the US Department of Veterans Affairs. (www.centrak.com/department-veterans-affairs-standardizes/) 
3. CenTrak's patent-protected Clinical-Grade Visibility  Real-Time Location System (RTLS) technology enables healthcare facilities to locate resources with certainty, at room, bay, bed and chair level locations. Competitive systems can provide location data with a confidence level but not with certainty. (www.centrak.com/videos/) 
4. CenTrak defers income (including the $6.6 million deferred in 2015) relating to the provision of ongoing system maintenance support for various contracts. This is recognised in future years over the duration of those contracts.
5. 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.
6. CenTrak's gross assets at 31 December 2015 were $26.2 million (17.9 million).
7. Dollar values were translated at a rate of $1.46: 1.

This information is provided by RNS
The company news service from the London Stock Exchange
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