Halma acquires medical technology firm

Safety, health and sensor technology group Halma has acquired SunTech Medical Group, which supplies clinical grade non-invasive blood pressure monitoring products and technologies.

The company was purchased for an initial consideration of $46m (£29.7m) for the share capital alongside $5.0m (£3.2m) for cash retained in the business. SunTech's working capital, excluding cash, is expected to be around $8.3m (£5.4m).

A further consideration of up to $6.0m (£3.9m) will be paid if earnings for the year to December 2012 exceed a pre-determined target.

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SunTech's unaudited accounts, adjusted for non-recurring expenses, for the financial year ended December 31st 2011 show revenues of $23.0m (£14.8m) and an operating profit of $5.4m (£3.5m), while current trading remains good, the firm said.

Andrew Williams, Halma's Chief Executive, said: "The acquisition of SunTech continues our strategy of building strong positions in markets with resilient long-term growth drivers. Their blood pressure monitoring technology is a perfect complement to Riester's own clinical grade blood pressure monitoring devices and this acquisition allows the two companies to work together to further develop their markets and products."

SunTech will join Halma's Health and Analysis sector within the Health Optics sub-sector which includes Riester, Keeler, Volk and Accutome.

The acquisition is expected to be immediately earnings enhancing.

Halma's share price rose 0.98% to 390.10p by 12:26.

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