Business
Acquisition Completed
Acquisition Completed.
About this update from Halma Plc
[{"type":"text","content":"\n HALMA PLC\n27 July 1999\n\n\n HALMA DOUBLES MARKET SHARE IN EXPLOSION PREVENTION \n\n FOURTH U.S. ACQUISITION BY HALMA IN 18 MONTHS \n\nThe Directors of Halma p.l.c. announce that on Monday, 26 July 1999 the \nGroup completed the purchase of the entire share capital of Oklahoma Safety\nEquipment Co., Inc. ('OSECO').\n\nOSECO, which is located in Tulsa, Oklahoma, is a leading US manufacturer of\nemergency pressure relief devices, including bursting discs and explosion\nrelief panels. These devices enable the almost instantaneous venting of\nhazardous pressure build-up which could otherwise lead to catastrophic\nexplosions. They are used in most process industries particularly\npetrochemical and pharmaceutical, where bursting discs are routinely relied \non to protect large-scale capital investments.\n\nThe audited accounts for OSECO for the year ended 30 September 1998 show\nturnover of US$11,107,000 and profit before tax of US$1,180,000, stated before\ndeduction of bonuses and profit sharing. The cash consideration is\nUS$7,900,000 for the share capital based on an estimate of the level of net\nassets as at completion. A further US$5,550,000 is payable in cash in respect\nof non-competition payments to five major shareholders and one other senior\nmanager of the company. The five major shareholders will remain with OSECO on\ntwo year service agreements in which they can also earn a bonus up to a total\nfigure of US$3,600,000 dependent on the sales growth of OSECO over the period\nfrom completion to 31 March 2001.\n\nStephen O'Shea, Halma Chief Executive, commented 'OSECO is our seventh\nacquisition in eighteen months and our fourth in the USA in that period. The\nacquisition directly complements the international activities of Elfab\nLimited, the UK market leader for this technology. OSECO strengthens our\nworld-wide coverage particularly in the USA, the largest market for bursting\ndiscs. OSECO is an excellent acquisition in its own right and we are\nexpecting to generate further added value through the OSECO/Elfab relationship\nin new product development and process improvement as well as international\nmarketing.'\n\nCopies of this announcement may be obtained from the Company's registered\noffice for a period of fourteen days and at the Company Announcements Office\nof the London Stock Exchange for two days from the date ...