Halma Regulatory News (HLMA)

20 Dec 2007 07:00

Halma PLC20 December 2007 Halma p.l.c. ACQUISITION OF RIESTER Expansion of Halma's Health and Analysis Sector Halma, the leading safety, health and sensor technology group, announces it hasacquired PP Medizintechnik GmbH and its subsidiaries Rudolf Riester GmbH & Co KGand Riester Verwaltungs GmbH (collectively 'Riester') from Paragon SecondaryPartners L.P. and G. Glufke for €55 million (£39.3 million) net cash. Riester, based in Jungingen, Germany, is a leading manufacturer of smalldiagnostic medical devices for applications including Ophthalmology, BloodPressure measurement and Ear, Nose and Throat diagnostics. Riester is aninternationally recognised brand and generates over 90% of its revenue outsideof Germany. The current CEO of Riester, Gerhard Glufke, will remain with thebusiness. In the year ended 31 December 2006, Riester's revenues and operating profitswere €19.4 million (£13.9 million) and €5.6 million (£4 million) respectively;the management accounts for the nine months ended 30 September 2007 indicatecontinued growth, with operating profits of €4.6 million (£3.3 million) (note2). The acquisition, which is immediately earnings enhancing in the currentfinancial year, has been funded from Halma's existing cash and debt facilities. There will be a • for • adjustment to the consideration paid, capped at €2million (£1.4 million), based on the level of net tangible assets at 31 December2007, with any adjustment payable by 6 March 2008. Andrew Williams, Halma's Chief Executive, commented: "Riester adds new products and sales channels to our existing Health Opticsbusiness, particularly in the medical doctor and practitioner market segment. Their geographic footprint is highly complementary with a strong presence inSpanish speaking territories. It is an excellent addition to our Health andAnalysis sector where we remain well placed to grow organically and throughfurther acquisitions. We welcome the Riester team to Halma." For further information please contact: Halma p.l.c. +44 (0)1494 721111Andrew Williams, Chief ExecutiveKevin Thompson, Finance Director Hogarth Partnership Limited +44 (0)20 7357 9477Rachel Hirst/Andrew Jacques Notes to editors 1. A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com 2. The operating profit figures are stated before goodwill amortisation, interest and non-recurring management fees. In the year ended 31 December 2006, these three items totalled €3.3 million (£2.4 million). Goodwill amortisation, interest and management charges arose as a result of the non-trading holding company structure implemented upon PP Medizintechnik GmbH's acquisition of the subsidiaries in 2005. 3. Riester's gross assets as at 31 December 2006 were €25.8 million (£18.4 million), including €16.1 million (£11.5 million) of goodwill. 4. This statement is not intended to constitute a profit forecast for the current financial period or 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. 5. Exchange rate used: £1 : €1.40 6. Forward-looking statements have been made by the Directors in good faith using information available up until the date that they approved this statement. Forward-looking statements should be regarded with caution because of the inherent uncertainties in economic trends and business risks. This information is provided by RNS The company news service from the London Stock Exchange