Halma strengthens water business with acquisition UPDATE

Halma, a safety, health and environmental technology group, has acquired ASL Holdings, a Northampton-based business which designs and manufactures machine-to-machine (M2M) communication products.

These products are incorporated into SMART meters for remote data monitoring and a range of other applications in the utility, transport and retail sectors.

The cash consideration is £6.5m with contingent consideration of up to £3.5m, which will be paid if revenues for the two years to March 31st 2015 exceed a pre-determined target. The acquisition, which is expected to be earnings enhancing, was funded from Halma's existing cash and debt facilities.

Unaudited accounts for the year to the end of December 2012 reported revenue of £7.1m.

ASL will become part of UK-based HWM-Water within Halma's Environmental & Analysis sector. Existing management will remain in place.

Andrew Williams, Halma's Chief Executive, said: "The transaction announced today demonstrates our ability to find and acquire businesses which are complementary with existing group companies in terms of technologies, markets and growth drivers.

"ASL will further strengthen HWM's market position within the water industry as well as adding new opportunities to diversify into other markets."

NR