REG - Halma PLC - Acquisition

HalmaAnnouncement

20/11/2023 07:00

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RNS Number : 8854T  Halma PLC  20 November 2023

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

Acquisition

Halma, the global group of life-saving technology companies, today announces
that it has acquired the TeDan group of companies (TeDan), comprising the
separate companies of TeDan Surgical Innovations, Inc., West Coast Surgical,
LLC, Axcess Surgical Innovations, LLC and TeDan Surgical Innovations GmbH.

 

Headquartered in Houston, Texas and Half Moon Bay, California, USA, TeDan is a
global leader in innovative surgical access systems, which it develops,
manufactures and supplies to surgeons for use in a range of acute therapeutic
procedures. Its primary market is access systems for spinal surgery, and the
USA accounts for the majority of its sales. Further information on TeDan is
given in the notes at the end of this announcement.

 

The initial cash consideration for TeDan is US$89.1m (approximately £72m), on
a cash- and debt-free basis, which will be funded from Halma's existing
facilities. When adjusted for tax benefits with a net present value of
approximately US$9.8 million (approximately £8 million), the net initial
consideration is approximately US$79.3 million (approximately £64 million).
An additional earn-out consideration of up to US$10.9m (approximately £9m) is
payable in cash, based on TeDan's performance in the period to June 2024.

 

TeDan's consolidated unaudited revenue for the 12 months to 31 March 2023 was
US$29.2m (approximately £24m), and TeDan has a Return on Sales above the
upper end of Halma's target range of 18-22%. TeDan will be a standalone
company in Halma's Healthcare sector, led by its current management team.

 

Danny Fishman, Chief Executive Officer of TeDan, commented: "World spending on
healthcare is increasing as demand continues to grow, especially as the number
of people over 60 has reached more than one billion. For over ten years, TeDan
has been at the forefront of surgical access innovation, creating an improved
experience for surgeons in the operating room and better outcomes for
patients.  Joining Halma will help us to grow and invest in the U.S. and
internationally. Together, we share a common purpose of ensuring a healthier
future for everyone, every day."

 

Marc Ronchetti, Group Chief Executive of Halma, commented: "TeDan further
extends the technologies and capabilities of our Healthcare sector in the
treatment of patients in acute therapeutic settings. TeDan's growth is
supported by the growing need for surgical treatment as populations age and as
lifestyles evolve and by the development of innovative new surgical procedures
which improve efficiency and standards of care. We are delighted to welcome
the TeDan team to Halma and look forward to working with them to expand their
global impact."

 

For further information, please contact:

Halma plc

Marc Ronchetti, Group Chief
Executive                                 +44
(0)1494 721111

Steve Gunning, Group 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

Oliver Hughes / Rachel Farrington / Ollie Hoare
  +44 (0)20 3128 8100

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 markets it operates in:

·    Safety - Protecting people's safety and the environment as
populations grow, and enhancing worker safety.

·    Environment - Addressing the impacts of climate change, pollution and
waste, protecting life-critical resources and supporting scientific research.

·   Health - Meeting the increasing demand for better healthcare as
chronic illness rises, driven by growing and ageing populations and lifestyle
changes.

It employs over 8,000 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.

Halma has been named as one of Britain's Most Admired Companies for the past
five years.

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

Further information on TeDan

The TeDan group of companies today comprises four distinct companies:

 

·      TeDan Surgical Innovations, which develops and supplies surgical
access systems;

·      West Coast Surgical, which manufactures these systems, offering
complete design, manufacturing, and production assembly of surgical devices
and instrumentation;

·      Axcess Surgical Innovations, which manufactures flexible and
rigid arms and retractor systems for surgical applications; and

·      TeDan Surgical Innovations GmbH, a new company, recently formed
in response to growing demand and business expansion in Europe.

 

TeDan has a portfolio of over 35 surgical access, exposure, holding and
instrumentation devices, which are sold both to leading medical device
manufacturers, and under their own brand. Each of these devices is designed
for a specific medical implant or surgical procedure, in close partnership
with their medical device manufacturing customers.

 

TeDan's devices are used primarily in spinal procedures, where TeDan's
products have a leading market position, as well as in neurological, cardiac
and orthopaedic surgeries.

 

TeDan has 16 active patents and 3 pending patents relating to its products.

 

 

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