Disposal

RNS Number : 6043K

Halma PLC

23 August 2012

 



Halma plc ("Halma") DISPOSAL Sale of Asset Monitoring Business Halma, the leading safety, health and environmental technology group, announces that on 22 August 2012 it completed the disposal of its Asset Monitoring sub-sector, comprising Tritech Holdings Limited and its subsidiary Tritech International Limited (together known as "Tritech") to Moog Components Group Limited ("Moog").  Cash consideration of £21.0 million was paid at completion of which £2.1 million was retained in escrow and will be released to Halma on the anniversary of the transaction conditional upon any valid warranty/indemnity claims being made by Moog. The initial consideration is subject to confirmation of the value of cash and working capital and adjustable £1 for £1 if outside a predetermined range.  For additional information, see Notes below.  Andrew Williams, Halma's Chief Executive, commented: "Tritech was acquired in November 2006 as our first entry into the sub-sea asset monitoring market and has performed well despite the challenges presented by the volatility of activity within the North Sea oil and gas industry. We have concluded that, despite its many attractions, we can create greater shareholder value by reallocating resources to other Halma sub-sector businesses and that Moog's presence in the marine energy markets will enable Tritech to make strong progress under their ownership. This disposal, along with the sale of Volumatic in March 2012, demonstrates Halma's ability to develop the Group's portfolio in order to sustain strong financial success."
For further information please contact: Halma plc Andrew Williams, Chief Executive Kevin Thompson, Finance Director	[phone]
MHP Communications Rachel Hirst/Andrew Jaques	[phone]

Notes
1.	Halma acquired the Tritech group (including its key supplier, System Technologies, and Sonar Research and Development ("SRD")) in three tranches in November 2006 and October 2007 for a total initial consideration of £12.6m with an additional earn-out payment of £2.5m in June 2007.  Part of the SRD business was sold in October 2009 for £0.5m. In the financial year ended 31 March 2012, Tritech had revenue of £12.3m.
2.	A gain will be recognised in the Group Income Statement after accounting for the disposal of assets, including the associated goodwill. Tritech was the only company reported within the Asset Monitoring sub-sector in Halma's Industrial Safety sector. Consequently, the Asset Monitoring sub-sector will no longer exist as a separate Halma sub-sector and full details of the disposal will be given in the 2012/13 Halma Annual Report.
3.	Moog Components Group Limited is a UK based subsidiary of Moog Inc. (NYSE: MOG.A and MOG.B).  Moog Inc. is a worldwide designer, manufacturer, and integrator of precision control components and systems.  Moog's high-performance systems control military and commercial aircraft, satellites and space vehicles, launch vehicles, missiles, automated industrial machinery, wind energy, marine and medical equipment.  Additional information about the company can be found at www.moog.com.
4.	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.
A copy of this announcement, together with other information about Halma and its other businesses, may be viewed on its website: www.halma.com.

 

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