Halma has acquired Firetrace USA, LLC
Halma, the leading safety, health and environmental technology group, announces it has acquired Firetrace USA, LLC, from private shareholders.
Firetrace, based in Scottsdale, Arizona, USA, designs and manufactures automatic fire detection and suppression systems for installation in small enclosed environments to protect people and critical assets. It will continue to operate out of its current facilities and existing management will remain in place.
Audited accounts for the year to 31 December 2013 report revenue of $28.8 million (£19.1 million) and profit before tax of $4.2million (£2.8 million). Audited accounts for the year to 31 December 2014 report revenue of $49.2 million (£32.6 million) and profit before tax of $18.1 million (£12.0m). The variation in revenue and profitability between the last two years' trading is substantially due to a large contract, worth $20 million in revenue terms, which completed shipping in 2014.
Under Halma ownership, profitability is expected to be above the Group's average return on sales. Unaudited accounts for the 8 months to the end of August 2015 show revenue of $23 million (£15.2 million).
The cash consideration is $110.0 million (£72.8 million) and is adjustable, US$ for US$ if net assets are more or less than a pre-determined amount. The acquisition, which is expected to be immediately earnings enhancing, was funded from Halma's existing cash and debt facilities.
Firetrace will become part of the Infrastructure Safety sector which includes global leaders in the design and manufacture of flame and smoke detectors, fire detection systems, security sensors and audible/visual warning devices.
Andrew Williams, Halma's Chief Executive, commented:
"Firetrace further extends Halma's product offering within the fire protection industry, adding fire suppression to our market leading fire detection capabilities. This transaction also demonstrates our ability to continue to find and acquire high quality businesses, with complementary technologies, operating within our existing market sectors."