Halma buys Rath Communications for $42m

Safety, health and environmental technology group Halma said it had bought Rath Communications, a provider of emergency communication systems for areas of refuge in the US for $42.4m (£32.6m), on a cash and debt free basis.

An area of refuge is a location in a building designed to hold occupants during a fire or other emergency, when evacuation may not be safe or possible.

Rath is based in Wisconsin and will become part of the group's infrastructure safety sector, Halma said.

The deal was funded from Halma's existing facilities and is expected to be immediately earnings enhancing. Rath's unaudited revenue for the year ended December 2018 was $15.9m.

Halma chief executive Andrew Williams said Rath extends Halma's safety communications capabilities and “adds a new market niche...where growth is being supported by tightening regulatory standards”.

“Rath is also well positioned to benefit from Halma's strategic growth enablers, bringing the potential for collaboration with other Halma businesses in elevator safety and healthcare to drive expansion into adjacent markets focused on the care and safety of the elderly and disabled people,” he said.