Halma acquires WEETECH for €57.5 million
06 October 2022
Halma, the global group of life-saving technology companies, today announces that it has acquired WEETECH Holding GmbH (WEETECH), that designs and manufactures safety-critical electrical testing technology for the aviation, rail, automotive and engineering sectors.
Headquartered in Wertheim, Germany, WEETECH ensures high and low voltage electric systems remain compliant with increasing safety regulation, aligning with Halma’s purpose to grow a safer, cleaner, healthier future for everyone, every day.
“Transporting people and goods causes one-fifth of global carbon emissions. As consumers seek to reduce their carbon footprint, they are embracing electric mobility. This transition means that cars, planes, buses, trains and other electrical equipment will use more high voltage electricity,” said Bernd Hartlein,Co-Chief Executive Officer of WEETECH. “By joining Halma, WEETECH can protect even more workers in dangerous testing environments around the world. Together, we’re committed to solving the big problems of our time, reducing the impacts of climate change and ensuring people’s safety.”
WEETECH technologies add new power capabilities within Halma’s Safety sector. Specifically, the company customises testing for cabling harnesses - multiple cables bound together to transmit electrical power. In addition to measuring quality and effectiveness of electrical capabilities, the testing technology can be customised to fit the unique needs of customers across various industries, including:
- Automotive: passenger cars, trucks, buses and even agricultural machinery are equipped with complex electric, electronic and non-electronic systems. WEETECH’s technology tests vehicles to ensure high voltage cabling is compliant with safety standards. Automated high voltage testing reduces risk of workplace accidents.
- Aerospace: The spread and complexity of aerospace products is significant. Often 10,000 wires need to be tested for proper functioning. Faulty wiring or malfunction can have disastrous consequences. WEETECH has provided reliable testing across aircrafts for decades.
- Rail: Increasing urbanisation, changes in mobility patterns and increasing digitalisation and networking are putting increased demands on the safety of future railway systems. Testing is critical for the electrical installation of air conditioning, Wi-Fi hot spots, switchboards and drivers’ cabins.
- Mechanical and Electrical Industry Applications: The increasing digitisation of virtual workplaces and medical technology are creating increasingly complex systems that require testing.
WEETECH is acquired from funds advised by PINOVA Capital. The consideration for WEETECH is €57.5m (approximately £50m), on a cash- and debt-free basis, and will be paid in cash and funded from Halma’s existing facilities. WEETECH’s unaudited revenue for the 12 months to 31 March 2022 was €20.8m (approximately £18m), with Return on Sales modestly above the upper end of Halma's target range of 18-22%. WEETECH will be led by its current management team and operate as a standalone company within Halma's Safety sector.
Andrew Williams, Group Chief Executive of Halma, commented:
“We are delighted to welcome WEETECH to Halma and look forward to supporting their future development through our Growth Enablers. WEETECH brings new opportunities for growth in electrical safety, driven by increasing safety needs and greater regulation. Their technology will play an important supporting role in addressing key issues such as growing urbanisation, the challenge of energy transition and the adoption of more efficient modes of transport, such as mass transit systems and electric vehicles.”
With the signing of this transaction, Halma has completed 12 Safety acquisitions in the past five years, totalling approximately £250 million (at current rates approximately €285 million).
For further information, please contact:
Halma plc
Andrew Williams, Group Chief Executive
Marc Ronchetti, Group Chief Executive Designate and Chief Financial Officer
Charles King, Head of Investor Relations +44 (0) 7776 685948
Clayton Hirst, Director of Corporate Affairs +44 (0) 7384 796 013
MHP Communications
Andrew Jaques / Rachel Farrington +44 (0)20 3128 8572
A copy of this announcement, together with other information about Halma, is available at www.halma.com.
About Halma
Halma is a global group of life-saving technology companies, focused on growing a safer, cleaner, healthier future for everyone, every day.
Its purpose defines the three broad market areas where it operates:
- Safety: protecting life as populations grow and enhancing worker safety.
- Environment: improving food and water quality, and monitoring air pollution.
- Health: meeting rising healthcare demand as growing populations age and lifestyles change.
It employs over 7,000 people in more than 20 countries, with major operations in the UK, Mainland Europe, the USA and Asia Pacific. Halma is listed on the London Stock Exchange (LON: HLMA) and is a constituent of the FTSE 100 index.
For the past three years Halma has been named one of Britain's Most Admired Companies by Management Today.
For more information: www.halma.com
Further information on WEETECH
Further information on WEETECH can be found at https://www.weetech.de/en/.
Notes:
Euro values are translated at an exchange rate of £1 : €1.14
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