Halma acquires electrical safety business for £44m
01 May 2024
Halma, the global group of life-saving technology companies, today announces that it has agreed to acquire MK Test Systems Limited (MK Test), that designs and manufacturers safety-critical technology used in the aerospace, rail and commercial electric vehicle industries.
Headquartered in Wellington, Somerset, UK, the company tests the electrical wiring of aeroplanes, trains and other vehicles for safety and quality to protect workers and passengers.
MK Test offers automated testing, which is quicker, more reliable and provides compliance traceability. This ensures the safety risk is addressed by:
- Protecting modern aircraft: Planes are designed to minimise the effect of lightning strikes and stray currents. To meet this requirement, MK Test’s loop resistance testing technology eliminates incorrect test results in the aircraft’s high-risk flammable zones.
- Safeguarding trucks and buses of the future: MK Test’s technology is used in the development of the next generation of electric vehicles, ensuring wiring is properly connected before plugging into a commercial vehicle’s battery.
- Powering the future of rail: As ageing rolling stock is replaced, trains will need higher voltages to operate increasingly complex electrical systems. Faulty wiring or a malfunction can have disastrous consequences, making testing of these electrical systems critical to ensure their safe operation.
The cash consideration for MK Test is £44m, on a cash-and debt-free basis, to be funded from Halma’s existing facilities. MK Test’s unaudited revenue for the 12 months to March 2024 was £12.4m, with Return on Sales substantially above the upper end of Halma's target range of 18-22%.
“MK Test further enhances our capabilities in electrical safety and brings new opportunities for growth, driven by increasing safety regulation and the need to protect high value assets,” said Marc Ronchetti, Group Chief Executive of Halma. “Its technology plays an important role in automated electrical testing and in ensuring the integrity of electrical systems. We are delighted to welcome MK Test and to support its development as it continues to scale its business globally.”
“Passenger and operator safety is a top priority for our customers. They must ensure that platforms and machines with increasingly complex electrical systems are manufactured and assembled correctly, are operating within specification, and are being properly maintained," said Jason Evans, Managing Director of MK Test. “Joining Halma means we can grow our business in key markets while helping more businesses meet increasing safety regulations and demands for test traceability. MK Test Systems is aligned with Halma’s purpose of growing a safer, cleaner, healthier future for everyone, every day.”
MK Test will be a standalone company within Halma's Safety sector, led by its current management team.
For further information, please contact:
Halma plc
Marc Ronchetti, Group Chief Executive
Steve Gunning, Group Chief Financial Officer
Melanie Horton, Deputy Head of Investor Relations +44 (0) 7554 013396
Clayton Hirst, Director of Corporate Affairs +44 (0) 7384 796 013
MHP
Oliver Hughes / Rachel Farrington / Ollie Hoare +44 (0)20 3128 8100
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 markets it operates in:
- Safety – Protecting people’s safety and the environment as populations grow, and enhancing worker safety.
- Environment – Addressing the impacts of climate change, pollution and waste, protecting life-critical resources and supporting scientific research.
- Health – Meeting the increasing demand for better healthcare as chronic illness rises, driven by growing and ageing populations and lifestyle changes.
It employs over 8,000 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.
Halma has been named as one of Britain’s Most Admired Companies for the past six years.
