Halma acquires Fiberguide Industries
September 11, 2008--Fiberguide to join Halma's photonics business in its Boonton, NJ-based Health and Analysis sector.
September 11, 2008--Halma, a global safety, health, and sensor technology group based in Amersham, England, has announced the acquisition of the trade and assets of Fiberguide Industries Inc. for an initial cash consideration of US$14.5 million (£8.2 million).
Fiberguide (Stirling, NJ), designs and manufactures complex optical fiber cables and assemblies, predominantly custom designed for OEMs. They sell into diverse end markets where high-performance light delivery or measurement is required. Approximately half of their revenues come from medical/biomedical, spectroscopic, and analytical instrument applications. Fiberguide will join Halma's photonics business within its Health and Analysis sector, based in Boonton, NJ. Halma purchased spectrometer manufacturer Ocean Optics (Dunedin, FL) in June 2004, and Labsphere (North Sutton, NH), a manufacturer of specialty optical coatings and light testing and measurement products, in Feb. 2007.
Unaudited accounts for the calendar year 2007 show revenues of $10.7 million (£6.0 million) and operating profit of $1.8 million (£1.0 million). The acquisition, which is immediately earnings enhancing, has been funded from Halma's existing cash and debt facilities.
The cash consideration is adjustable $1 for $1, if the completion accounts demonstrate net tangible assets above or below $4.1 million (£2.3 million). Deferred purchase consideration of up to $10 million (£5.6 million) is payable to the vendors, based on profit before tax for the 12-month periods ending October 3, 2009 and October 2, 2010, exceeding predetermined targets.
Halma's chief executive Andrew Williams commented, "Fiberguide deepens our presence within the growing photonics market and strengthens our existing fiber-optic assembly activities. There are excellent opportunities for Fiberguide to develop strongly within Halma--particularly through technical collaboration and growth in international markets which currently represent less than 5% of Fiberguide's revenues."