Bureau d'Electronique Appliquée S.A. and B.E.R. Group S.A.
16 Oct 2002
Halma, the leading safety and environmental technology group, today issued a trading update and announced the acquisition of Bureau d'Electronique Appliquée S.A. and B.E.R. Group S.A. ("BEA" Group). The acquisition of BEA for an initial sum of €72 million, including repayment of loans and purchase of cash, is immediately earnings enhancing and was funded from Halma's existing cash resources. The issue of Halma's usual October Trading Update has been brought forward to coincide with this acquisition announcement.
BEA designs, assembles and sells sensors for automatic doors. It is the world market leader in its specialised market. This family-owned business was founded in 1965 and is headquartered in Liège, Belgium, with operations in Pittsburgh, USA and China. In the year to 31 December 2001, BEA made sales of €42 million, earnings before interest, tax and amortisation (EBITA) of €7 million and had net assets of €22 million, excluding loans. In addition to the initial sum paid there are earn out payments based on increased profits in the period to March 2004, giving a maximum cash price of €95 million. BEA's sensors use microwave and infra-red technology to detect people approaching automatic doors in shops, offices and commercial premises and work in conjunction with door opening mechanisms. The technology BEA has developed is complementary to Halma's current techniques and is widely used by many of the leading manufacturers of automatic doors in the USA, Europe and around the world. It will join Halma's Elevator Electronics Division, the acknowledged world leader in the control of elevator doors.
Halma confirmed that its first six months trading in this financial year had continued as predicted. At Halma's AGM on 1 August 2002, David Barber, Chairman, said that order intake in the first quarter was similar to last year with sales a little lower. This pattern has continued into the second quarter and is anticipated to lead to half-year profits a little below the first half of last year. Trading at this level, combined with the contribution from the BEA acquisition, should result in full-year earnings within the range of current market expectations.
Stephen O'Shea, Group Chief Executive, remarked: "We are delighted with the BEA acquisition which is the largest we have made to date and was paid for in cash generated by our strong cash flow. The price paid is in line with our normal criteria. BEA extends our range of products and gives us access to additional markets using technology with which we are familiar and is an excellent fit with our existing operations."
Further information: Stephen O'Shea, Chief Executive, Halma p.l.c., Tel +44(0)1494 721111.