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Case Studies

Peter A. Sokoloff & Co. regularly analyzes transactions which occur within the industries covered. An archive of these case studies is kept online as a courtesy to our colleagues. To receive by e-mail new case studies as they are prepared, please e-mail [email protected] with your contact information.

Archives > Transaction Case Study #2

Halma Acquiring Texecom Ltd.

Dear Colleague,

This is the second in our series on valuation of currently reported transactions. Today's case study looks at Halma Group's November 8th acquisition of Texecom Limited.

Halma Group, a £300 million revenue (US $523 million), London Stock Exchange listed UK based provider of safety, health and sensor technology has acquired Texecom, also based in the UK. Texecom manufactures security sensor and alarm products including motion detectors, control panels, signaling equipment, perimeter protection devices, external sounders and fire detectors.

Halma paid £26 million (US $45.3 million) cash for Texecom. This represents 1.35x revenue for the fiscal year ended August 31, 2005. The purchase price is 6.67x EBIT (Earnings Before Interest and Tax).

Andrew Williams, Halma’s Chief Executive, was quoted as indicating that Halma anticipates significant opportunities for collaboration across its Infrastructure Sensor sector, including cross-selling and product development opportunities. The acquisition is expected to strengthen Halma's safety sensor products portfolio for residential, commercial and industrial buildings.

We hope that you find this new feature from Sokoloff & Co. interesting, informative and useful.  We welcome your comments and suggestions.

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