Halma, the leading safety, health and sensor technology group, today announces the acquisition of SunTech Medical Group Limited ("SunTech") on 31 May 2012.
SunTech (www.suntechmed.com) is a pre-eminent supplier of clinical grade non-invasive blood pressure monitoring products and technologies. They sell both under the SunTech brand and through a variety of medical device OEMs which incorporate SunTech products into their own patient monitoring systems. The company manufactures at its headquarters in Morrisville, North Carolina, USA and in Shenzhen, China with a sales office in Eynsham, UK.
The initial cash consideration is $46.0 million (£29.7 million) for the share capital plus $5.0 million (£3.2 million) for cash retained in the business. The combined consideration is adjustable Dollar for Dollar based on the level of working capital and cash at closing. Working capital, excluding cash, is expected to be approximately $8.3 million (£5.4 million).
Contingent consideration of up to $6.0 million (£3.9 million) is payable if earnings for the year to December 2012 exceed a pre-determined target. Unaudited accounts, adjusted for non-recurring expenses, for the financial year ended 31 December 2011 show revenues of $23.0 million (£14.8 million) and an operating profit of $5.4 million (£3.5 million). Current trading remains good.
SunTech is being acquired from management and a group of private shareholders including small private institutions and trusts. Existing management will remain in place and will continue to operate the business. The acquisition, which is expected to be immediately earnings enhancing, has been funded from Halma's cash and debt facilities.
SunTech will join Halma's Health and Analysis sector within the Health Optics sub-sector which includes Riester, Keeler, Volk and Accutome. SunTech is particularly complementary to Riester, which already sells blood pressure and vital signs monitors in over 50 countries worldwide.
Andrew Williams, Halma's Chief Executive, commented:
"The acquisition of SunTech continues our strategy of building strong positions in markets with resilient long-term growth drivers. Their blood pressure monitoring technology is a perfect complement to Riester's own clinical grade blood pressure monitoring devices and this acquisition allows the two companies to work together to further develop their markets and products.
