REG - Halma PLC - Acquisition

HalmaAnnouncement

03/10/2022 07:00

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RNS Number : 4449B  Halma PLC  03 October 2022

 

Halma plc ('Halma' or the 'Group')

Acquisition

 

Halma, the global group of life-saving technology companies focused on growing
a safer, cleaner and healthier future for everyone every day, today announces
that it has acquired IZI Medical Products, LLC (IZI).

 

Headquartered in Maryland, USA, IZI is a designer, manufacturer and
distributor of medical consumable devices which are mainly used by
interventional radiologists and surgeons in a range of acute, hospital-based
diagnostic and therapeutic procedures. IZI's three primary markets are
products for Image Guided Surgery, Interventional Oncology and Interventional
Spine procedures (see "Further Information on IZI" at the end of this
announcement).

 

The initial consideration for IZI is US$153.5m (approximately £138m), on a
cash- and debt-free basis, and will be paid in cash and funded from Halma's
existing facilities. When adjusted for tax benefits with a net present value
of approximately US$11m (approximately £10m), the net initial consideration
is approximately US$142.5m (approximately £128m). An additional consideration
of up to US$14.5m (approximately £13m) is payable in cash, based on IZI's
growth in the year to 31 March 2023.

 

IZI's unaudited revenue for the 12 months to 31 March 2022 was US$32.9m
(approximately £30m), with Return on Sales substantially above Halma's target
range of 18-22%. IZI will be a standalone company within Halma's Healthcare
sector, led by its current management team.

 

Greg Groenke, Chief Executive Officer of IZI Medical Products, commented: "Our
purpose is to improve patients' lives with physician-led innovation. This
vision aligns to Halma's when it comes to improving quality of care delivered
by healthcare providers. Many physicians started using our technologies in
medical school and have continued to do so throughout their careers. Joining
the Halma group will take IZI Medical Products to the next level, adding
R&D, commercial and international growth opportunities that will help us
in our journey to advance healthcare for patients worldwide."

 

Andrew Williams, Group Chief Executive of Halma, commented: "IZI further
extends our Healthcare sector into products supporting minimally invasive
diagnosis and treatment of acute conditions, principally cancer. IZI's growth
is supported by the higher incidence of health conditions in ageing
populations, improved screening and diagnostics enabling earlier treatment of
disease, and expansion into adjacent applications through innovation."

 

For further information, please contact:

 

Halma plc

Andrew Williams, Group Chief Executive

Marc Ronchetti, Group Chief Executive Designate and Chief Financial Officer

Charles King, Head of Investor
Relations
                     +44 (0) 7776 685948

Clayton Hirst, Director of Corporate
Affairs
                         +44 (0) 7384 796 013

 

MHP Communications

Andrew Jaques / Rachel
Farrington
                                   +44 (0)20 3128 8572

 

A copy of this announcement, together with other information about Halma, is
available at www.halma.com (http://www.halma.com) .

 

About Halma

 

Halma is a global group of life-saving technology companies, focused on
growing a safer, cleaner, healthier future for everyone, every day.

Its purpose defines the three broad market areas where it operates:

·    Safety: protecting life as populations grow and enhancing worker
safety.

·    Environment: improving food and water quality, and monitoring air
pollution.

·    Healthcare: meeting rising healthcare demand as growing populations
age and lifestyles change.

It employs over 7,000 people in more than 20 countries, with major operations
in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on
the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100
index.

For the past three years Halma has been named one of Britain's Most Admired
Companies by Management Today.

For more information see www.halma.com (http://www.halma.com/)

Further information on IZI

 

Founded in 1994, IZI is headquartered in Baltimore, Maryland, USA, and has a
further manufacturing site in Memphis, Tennessee, USA and a sales office in
Munich, Germany. It has 86 employees.

 

IZI operates in three primary markets:

·    Image Guided Surgery: fiducial(1) and optical markers used in image
guided surgery;

·    Interventional Oncology: comprising devices used to conduct biopsies
across a wide range of anatomy, products which support surgical procedures,
and radiation therapy markers; and

·    Interventional Spine procedures: products used to diagnose and
strengthen vertebrae which have been compromised due to osteoporosis or bone
cancer.

 

IZI have a portfolio of 44 medical consumable products and 107 active patents.
Their products are typically used by Interventional Radiologists and surgeons
in hospital settings, and their technologies are employed in approximately
2,500 hospitals in the USA and in 35 countries internationally.

 

Note 1: a fiducial marker is a medical device or object placed in or on a
patient's body to mark an area for radiation treatment or surgery.

 

ENDS

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