HALMA PLC
27 July 1999
HALMA DOUBLES MARKET SHARE IN EXPLOSION PREVENTION
FOURTH U.S. ACQUISITION BY HALMA IN 18 MONTHS
The Directors of Halma p.l.c. announce that on Monday, 26 July 1999 the
Group completed the purchase of the entire share capital of Oklahoma Safety
Equipment Co., Inc. ('OSECO').
OSECO, which is located in Tulsa, Oklahoma, is a leading US manufacturer of
emergency pressure relief devices, including bursting discs and explosion
relief panels. These devices enable the almost instantaneous venting of
hazardous pressure build-up which could otherwise lead to catastrophic
explosions. They are used in most process industries particularly
petrochemical and pharmaceutical, where bursting discs are routinely relied
on to protect large-scale capital investments.
The audited accounts for OSECO for the year ended 30 September 1998 show
turnover of US$11,107,000 and profit before tax of US$1,180,000, stated before
deduction of bonuses and profit sharing. The cash consideration is
US$7,900,000 for the share capital based on an estimate of the level of net
assets as at completion. A further US$5,550,000 is payable in cash in respect
of non-competition payments to five major shareholders and one other senior
manager of the company. The five major shareholders will remain with OSECO on
two year service agreements in which they can also earn a bonus up to a total
figure of US$3,600,000 dependent on the sales growth of OSECO over the period
from completion to 31 March 2001.
Stephen O'Shea, Halma Chief Executive, commented 'OSECO is our seventh
acquisition in eighteen months and our fourth in the USA in that period. The
acquisition directly complements the international activities of Elfab
Limited, the UK market leader for this technology. OSECO strengthens our
world-wide coverage particularly in the USA, the largest market for bursting
discs. OSECO is an excellent acquisition in its own right and we are
expecting to generate further added value through the OSECO/Elfab relationship
in new product development and process improvement as well as international
marketing.'
Copies of this announcement may be obtained from the Company's registered
office for a period of fourteen days and at the Company Announcements Office
of the London Stock Exchange for two days from the date of this announcement.
Press Contact: Mr Stephen R O'Shea
Chief Executive, Halma p.l.c.
Tel: +44 (0)1494 721111