Acquisition search profile of Halma
The opportunity: Halma is a successful highly profitable and strongly growing group with an outstanding track record of acquiring successful niche companies and fostering their growth while leaving management and brands in place. Halma is an excellent “home” of successful businesses which want to grow beyond their own capabilities.
Targeted business areas: Specialized manufacturing businesses with own technology and barriers to entry with global market potential. Products should be standardized and sold in significant numbers (preferably repeat business with limited alternatives for customers and high switching costs). Customized systems (except for OEM clients with large volumes resp. repetitive orders) or capital equipment are less attractive.
Target sectors: Of particular interest are businesses in or adjacent to Halma’s current activities: medical equipment and disposables, especially ophthalmology; photonics; fluid sample preparation and handling products (laboratory, analytical equipment); water quality analysis products; fire and gas detection and industrial safety products; but Halma is also interested in evaluating businesses outside of these sectors provided the other business type and target criteria are still met.
Financial criteria: Size: EBIT € 1 million - € 10 million; growth: 20% annual growth potential is a must, historical growth at least 10%; profitability: ROS (EBIT-margin) must be at least 10%, preferably above 15%; management: Targets must have a strong ambitious management team willing to stay and to develop the Target further forward.
About Halma:Halma is a public company (London Stock Exchange) with a market capitalization beyond £1b. In 2010, the group made revenues of £460m and a pre-tax profit of £86m. Through its 38 operating companies Halma is present in 22 countries with a focus on Europe, the USA and Asia. Halma has consistently delivered excellent returns with ROS above 16% for more than 25 years. Halma is highly decentralized and leaves great autonomy to its operating companies. Corporate headquarters are very lean (staff of 20) and mainly deal with Investor Relations. Acquired companies are supported to grow further. Synergies between operating companies are realized collaboratively between operating companies and there is no integration forced top down.
Our role: Kurmann Partners (IMAP Switzerland) supports Halma’s acquisition team in Europe. For further information contact Juerg Kurmann.
-> Find a PDF of this search profile here.
