Halma spends GBP18.1m on two earnings-enhancing acquisitions

Health and safety products group Halma has completed two overseas acquisitions in its medical business for the equivalent of £13.2m and £4.9m, both of which are expected to be immediately earnings enhancing.

With both purchases funded from the FTSE 250 company's existing cash and debt facilities, the larger is Cardios, a Brazilian specialist in ambulatory blood pressure monitoring, while the other acquisition was of a range of non-invasive blood pressure devices.

São Paulo-based Cardios, makes and supplies electrocardiogram (ECG) recorders and ambulatory blood pressure monitors to Brazilian healthcare providers and last year reported revenue of 25.1m reais (£6.1m).

Complementing Halma's range, the devices are used by cardiologists and general practitioners to diagnose and prevent heart and blood vessel related diseases like hypertension, diabetes, heart attacks, and heart arrhythmias.

Halma will pay an initial cash sum of 50m Brazilian reais (£12.1m) plus up to a further possible R$5m (£1.2m) based on performance to 4 August 2018.

Halma's SunTech Medical subsidiary also bought of a range of non-invasive blood pressure monitoring products from CAS Medical Systems on 25 July, which it said would provide "more clinical-grade options for OEM customers seeking NIBP technology for multi-parameter monitors, EMS defibrillators, haemodialysis machines and various other clinical monitoring devices".

An initial cash payment of $4.5m (£3.4m) could rise by a further $2m based on the achievement of certain sales criteria through to June 2019.

The products generated $3.6m revenue in the last calendar year.

Halma chief executive Andrew Williams said: "Cardios and CASMED NIBP are great examples of how Halma can strengthen both the geographic footprint and intellectual property of our existing businesses through acquisition.

"Cardios extends our Medical sector's reach further into developing international markets such as Brazil, where demand for and access to healthcare continues to grow, while CASMED NIPD strengthens SunTech's position as the world leader in OEM non-invasive blood pressure technology."