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(Alliance News) - Halma PLC said Monday it has made two acquisitions, one in its Medical unit and a second in Infrastructure Safety.
The hazard detection and life protection firm has acquired Florida-based NovaBone Products LLC for an initial cash consideration of USD97 million, on a cash and debt free basis. Halma said the deal will be funded from its existing facilities.
The business will become a part of Halma's Medical unit, with additional earn-outs payable dependent on NovaBone's performance in the first two financial years up to March 2022. The maximum additional payment is capped at USD40 million over the two years.
NovaBone develops synthetic bone graft products, which help bone regeneration, primarily for orthopaedic and dental surgical procedures. Halma noted the products are Food & Drug Administration approved.
Halma expects NovaBone's revenue and adjusted earning before interest and tax in 2019 to be USD21.0 million and USD6.9 million, respectively.
"NovaBone extends our Medical sector's presence in surgical applications, adding a new niche within the orthopedics market, which is growing fast due to the ageing population and increasingly sedentary lifestyles causing joint problems. It has strong technology and knowhow within the fast-growing biologics segment, developing biomaterials that harnesses the body's natural healing process to accelerate bone growth," Halma Chief Executive Andrew Williams said.
Additionally, Halma has also acquired a 70% stake in Australian fire protection maintenance software firm FireMate Software Pty Ltd for a maximum AUD18.2 million, about USD12.4 million.
Halma will pay an initial AUD11.8 million and a further AUD6.4 million will be paid dependent on FireMate's financial performance up to June 2022. This deal also will be funded from Halma's existing facilities.
The FTSE 100-listed firm noted it has an agreement in place to acquire the remaining 30% of FireMate in 2025.
FireMate's revenue and Ebit in the year ended June 2019 were AUD2.5 million and AUD900,000, respectively.
"FireMate's software solutions are highly complementary to those currently offered by our Infrastructure Safety sector's fire businesses and further strengthen our capabilities in connected and integrated fire systems internationally," Williams commented.
He added: "These businesses are exciting additions to Halma, bringing new technologies and market niches to two of our sectors and are highly aligned to our purpose. Both businesses are well positioned to benefit from the range of Halma's strategic Growth Enablers and we look forward to working with their management teams to deliver further growth."
Shares in Halma were down 0.6% in London on Monday morning at 2,149.00 pence.
By Paul McGowan; paulmcgowan@alliancenews.com
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