Acquisition

RNS Number : 4449B

Halma PLC

03 October 2022

 

 

Halma plc ('Halma' or the 'Group')

Acquisition

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future for everyone every day, today announces that it has acquired IZI Medical Products, LLC (IZI).

Headquartered in Maryland, USA, IZI is a designer, manufacturer and distributor of medical consumable devices which are mainly used by interventional radiologists and surgeons in a range of acute, hospital-based diagnostic and therapeutic procedures. IZI's three primary markets are products for Image Guided Surgery, Interventional Oncology and Interventional Spine procedures (see "Further Information on IZI" at the end of this announcement).

The initial consideration for IZI is US$153.5m (approximately £138m), on a cash- and debt-free basis, and will be paid in cash and funded from Halma's existing facilities. When adjusted for tax benefits with a net present value of approximately US$11m (approximately £10m), the net initial consideration is approximately US$142.5m (approximately £128m). An additional consideration of up to US$14.5m (approximately £13m) is payable in cash, based on IZI's growth in the year to 31 March 2023.

IZI's unaudited revenue for the 12 months to 31 March 2022 was US$32.9m (approximately £30m), with Return on Sales substantially above Halma's target range of 18-22%. IZI will be a standalone company within Halma's Healthcare sector, led by its current management team.

Greg Groenke, Chief Executive Officer of IZI Medical Products, commented: "Our purpose is to improve patients' lives with physician-led innovation. This vision aligns to Halma's when it comes to improving quality of care delivered by healthcare providers. Many physicians started using our technologies in medical school and have continued to do so throughout their careers. Joining the Halma group will take IZI Medical Products to the next level, adding R&D, commercial and international growth opportunities that will help us in our journey to advance healthcare for patients worldwide."

Andrew Williams, Group Chief Executive of Halma, commented: "IZI further extends our Healthcare sector into products supporting minimally invasive diagnosis and treatment of acute conditions, principally cancer. IZI's growth is supported by the higher incidence of health conditions in ageing populations, improved screening and diagnostics enabling earlier treatment of disease, and expansion into adjacent applications through innovation."

For further information, please contact:  

Halma plc  

Andrew Williams, Group Chief Executive

Marc Ronchetti, Group Chief Executive Designate and Chief Financial Officer

Charles King, Head of Investor Relations                         [phone]

Clayton Hirst, Director of Corporate Affairs                                         [phone]

MHP Communications

Andrew Jaques / Rachel Farrington                                       [phone]

A copy of this announcement, together with other information about Halma, is available at www.halma.com .

About Halma

Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day.

Its purpose defines the three broad market areas where it operates:

· Safety: protecting life as populations grow and enhancing worker safety.

· Environment: improving food and water quality, and monitoring air pollution.

· Healthcare: meeting rising healthcare demand as growing populations age and lifestyles change.

It employs over 7,000 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100 index.

For the past three years Halma has been named one of Britain's Most Admired Companies by Management Today.

For more information see  www.halma.com

Further information on IZI

Founded in 1994, IZI is headquartered in Baltimore, Maryland, USA, and has a further manufacturing site in Memphis, Tennessee, USA and a sales office in Munich, Germany. It has 86 employees.

IZI operates in three primary markets:

·  Image Guided Surgery: fiducial¹ and optical markers used in image guided surgery;

· Interventional Oncology: comprising devices used to conduct biopsies across a wide range of anatomy, products which support surgical procedures, and radiation therapy markers; and

· Interventional Spine procedures: products used to diagnose and strengthen vertebrae which have been compromised due to osteoporosis or bone cancer.

IZI have a portfolio of 44 medical consumable products and 107 active patents. Their products are typically used by Interventional Radiologists and surgeons in hospital settings, and their technologies are employed in approximately 2,500 hospitals in the USA and in 35 countries internationally.

Note 1: a fiducial marker is a medical device or object placed in or on a patient's body to mark an area for radiation treatment or surgery.

ENDS

 

END

 

 

ACQLMMLTMTTJBIT