Halma Acquires Fiberguide Industries, Inc

Halma, the leading safety, health and sensor technology group, announces the acquisition of the trade and assets of Fiberguide Industries Inc ('Fiberguide') for an initial cash consideration of $14.5M (£8.2M).

Fiberguide, based in Stirling, New Jersey designs and manufactures complex optical fibre cables and assemblies, predominantly custom designed for OEMs. They sell into diverse end markets where high performance light delivery or measurement is required. Approximately half of their revenues come from medical/biomedical, spectroscopic and analytical instrument applications. Fiberguide will join Halma's Photonics business within its Health and Analysis sector.

Unaudited accounts for the calendar year 2007 show revenues of $10.7M (£6.0M) and operating profit of $1.8M (£1.0M). The acquisition, which is immediately earnings enhancing, has been funded from Halma's existing cash and debt facilities.

The cash consideration is adjustable $1 for $1, if the completion accounts demonstrate net tangible assets above or below $4.1M (£2.3M). Deferred purchase consideration of up to $10M (£5.6M) is payable to the vendors, based on profit before tax for the 12-month periods ending 3 October 2009 and 2 October 2010 exceeding pre-determined targets.

Andrew Williams, Halma's Chief Executive, commented:

"Fiberguide deepens our presence within the growing Photonics market and strengthens our existing fibre optic assembly activities. There are excellent opportunities for Fiberguide to develop strongly within Halma - particularly through technical collaboration and growth in international markets which currently represent less than 5% of Fiberguide's revenues."

SOURCE: Halma