Health and environmental technology group Halma has acquired MicroSurgical Technology (MST) for approximately 59m dollars.
The transaction comprised an initial cash consideration is $57.0m (£35.2m) for the share capital plus $2.0m (£1.2m) for cash retained in the business. The combined consideration is adjustable Dollar-for-Dollar if the level of working capital at closing falls outside an agreed range.
Halma reported that a contingent consideration of up to $43.0m (£26.5m) would be payable if earnings for the two years to March 2015 exceeded pre-determined targets. Audited accounts for the full financial year ended December 31st 2011 show revenue of $20.4m (£12.6m).
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Unaudited accounts for the first nine months of the financial year ended December 31st 2012 show revenue of $17.1m (£10.6m).
MST is being acquired from management and several private shareholders. Existing management will remain in place and will continue to operate the business in Redmond. The acquisition, which is expected to be immediately earnings enhancing, has been funded from Halma's cash and debt facilities.
Andrew Williams, Halma's Chief Executive Officer, commented: "The acquisition of MST continues our strategy of focusing on critical products in niche markets with strong growth drivers, expanding our surgical product offering in ophthalmology. The international presence of our other ophthalmic product businesses offers exciting growth opportunities for MST under Halma's ownership."
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