Halma Regulatory News (HLMA)

Halma p.l.c. ('Halma')

ACQUISITION OF MEDICEL AG AND ROBUTEC GMBH

Halma, the leading safety, health and sensor technology group, announces the acquisition on 8 March 2011 of Medicel AG ('Medicel'), together with its subsidiary Robutec GmbH, from Messrs Hohl and Dockhorn and financial shareholders. The initial cash consideration is CHF70.0 million (£46.6 million) and is adjustable, CHF for CHF, based on the level of net tangible assets at closing. Both businesses are based in Wolfhalden, Switzerland.

Medicel is a leader in the design and manufacture of single-use injector devices for Intra Ocular Lenses (IOL) used for cataract surgery and also manufactures phacoemulsification products used in the same procedure. Robutec is a specialist medical device assembly and packaging business and is Medicel's largest supplier. Medicel and Robutec will operate as a single company within Halma's Health and Analysis sector as part of the Health Optics group of businesses.

Medicel acquired Robutec early in March 2011 (from Mr Hohl and WSW Holding) so figures from Medicel's audited accounts for the financial year ended December 2009 have been adjusted to include Robutec. The audited 2009 profit before tax of the combined operations was CHF8.5 million (£5.7 million) and adjusted gross assets were CHF7.6 million (£5.1 million). The results for 2010 are expected to show at least 10% growth in keeping with performance in recent years.

Deferred purchase consideration of up to CHF30 million (£20.0 million) is payable based on earnings growth over the three financial years to March 2014. The acquisition, which is earnings enhancing, has been funded from Halma's existing cash and debt facilities.

Key management, including Messrs Hohl and Dockhorn, will remain with Medicel following the acquisition.

Andrew Williams, Halma's Chief Executive, commented:

"Medicel and Robutec further extend our presence in the ophthalmic surgical instrument market which is forecast to see continued growth due to an aging population and increased global access to healthcare. Cataracts are the leading cause of treatable blindness in the world, with approximately 15 million surgeries performed annually. There is a migration towards single-use IOL injectors where Medicel have established a strong market position with products that allow surgeons to use a smaller incision size leading to improved patient safety and outcomes."

For further information please contact:

Halma p.l.c.

Andrew Williams, Chief Executive

Kevin Thompson, Finance Director

+44 (0)1494 721111

MHP Communications

Rachel Hirst/Andrew Jaques

+44 (0)20 3128 8100

Notes

1.

A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com.

2.

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.

3.

4.

Exchange rate used: CHF 1.501/£1.

The figures given above for 2009 were prepared in accordance with Swiss accounting standards.