M&A Update

Halma plc ('Halma')

M&A Update

Halma, the global group of life-saving technology companies focused on growing a safer, cleaner and healthier future, is announcing that it has recently completed three acquisitions for a total consideration of £48.8 million (including any deferred consideration), and that it has completed the sale of Texecom Limited ("Texecom") for a consideration of £65 million. These actions demonstrate Halma's strategy of actively managing its portfolio of global businesses to be aligned with the Group's purpose and to maintain strong growth and returns over the long term.

Acquisitions

Halma operates in three sectors - Safety, Environmental & Analysis and Medical - which are aligned to its purpose. The acquisitions, which span two of these three sectors, had an aggregate reported revenue of approximately £20.5 million in the year ended 31 March 2021 and £23.3 million in the year ended 31 March 2020. Their combined profitability is within Halma's target range of 18%-22% Return on Sales.

In the Safety sector, Halma has acquired the Ramtech group of companies ("Ramtech"), for a cash consideration of £15.5 million, on a cash and debt free basis. Ramtech is headquartered in Nottingham, UK and supplies wireless fire systems for temporary sites, primarily in the construction markets. Ramtech's audited revenue for the year ended 31 March 2021 was £9.3 million.

In the Environmental & Analysis sector, there have been two acquisitions. Halma's pipeline inspection systems business, Mini-Cam, has acquired Dancutter A/S ("Dancutter"), a Danish designer and manufacturer of trenchless pipeline rehabilitation equipment for a cash consideration of €18 million (£15.4 million¹), on a cash and debt free basis. Dancutter's unaudited revenue for the year ended 31 March 2021 was €4.6 million (£3.9 million¹).

Halma has also acquired Sensitron S.r.l. ("Sensitron"), a gas detection company based in Milan, Italy, for a cash consideration of €21 million (£17.9 million¹), on a cash and debt free basis. Sensitron's devices, which include detectors for hazardous locations and for refrigerant gases, enhance safety and detect the release of gases harmful to people and the environment. Sensitron reported unaudited revenue of €8.5 million (£7.3 million¹) in the year ended 31 March 2021.

Disposal of Texecom

Halma has completed the sale of Texecom for a total cash consideration of £65 million on a cash and debt free basis in a management buyout supported by LDC, a UK based mid-market private equity investor. Texecom is a provider of electronic security systems, and is headquartered in Lancashire, UK. Texecom's management team will continue to lead the business, which will operate out of its current locations.

Texecom Limited was acquired by Halma in November 2005 for a total cash consideration of £26.0 million. A gain will be recognised on disposal. In the financial year ended 31 August 2005, Texecom reported revenue of £19.2 million. In the financial year ended 31 March 2020 it reported revenue of £39.9 million, and in the financial year ended 31 March 2021 it reported audited revenue of £33.3 million.

Texecom's management team will continue to build on its market-leading position and international presence through developing new products, enhancing its digital services and exploring complementary acquisitions.

Andrew Williams, Group Chief Executive at Halma, commented:

"I am pleased that we have continued to find exciting new companies to join Halma. Each acquisition is strongly aligned with our purpose and financial model and will bring complementary capabilities including new technologies and broader market reach. We look forward to working with the leadership groups of Ramtech, Dancutter and Sensitron as they seek to grow their businesses over the long term.

It is also pleasing to have found a new home for Texecom, so that it can continue to invest and grow under the existing management team, who have served Halma well over many years. We wish them and the whole Texecom workforce every success for the future under their new ownership."

For further information, please contact:

Halma plc

Andrew Williams, Group Chief Executive                                              +44 (0)1494 721111

Marc Ronchetti, Chief Financial Officer

Charles King, Head of Investor Relations                                               +44 (0) 7776 685948

Clayton Hirst, Director of Corporate Affairs                                           +44 (0) 7384 796 013       

MHP Communications

Andrew Jaques / Rachel Farrington                                                         +44 (0)20 3128 8613

A copy of this announcement, together with other information about Halma, may be viewed on its website:  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 protecting worker safety.

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

·    Health: 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.

In January 2021, Halma was named Britain's Most Admired Company by Management Today.

Notes:

1.            At an exchange rate of £1 : €1.17.

2.            Houlihan Lokey Capital, Inc. served as exclusive financial advisor to Halma in respect of the disposal of Texecom.

END