Halma Expands Safety Sector with £230m Acquisition of E2S Group

Halma plc (LON: HLMA), the global group of life-saving technology companies, today announced the acquisition of E2S Group Ltd (E2S) for a cash consideration of £230 million, funded from existing facilities.

The move signals a continued expansion into fire detection and alarm systems, further solidifying Halma's position in the safety sector.

E2S, founded in 1992, specializes in designing, developing, and manufacturing high-performance notification, initiation, and detection devices. These devices are primarily deployed in hazardous environments within heavy industries and complex manufacturing settings.

Crucially, E2S products alert personnel to potential dangers, enabling rapid response and enhancing overall safety.

The acquisition price represents a multiple of approximately 5.2 times E2S’s forecast revenue of £44 million for the 12 months to 31 December 2025. E2S will operate within Halma's Safety Sector, benefiting from Halma's global resources and expertise to accelerate its growth trajectory.

E2S’s operations span various end markets, including oil and gas, renewable energy, power, and manufacturing, all of which are subject to stringent safety regulations. Geographically, E2S is headquartered in London, UK, with operations in the USA and France.

This acquisition aligns with Halma's strategy of acquiring businesses with strong growth potential in niche markets. The integration of E2S's capabilities will complement Halma's existing strengths in fire safety and gas detection, strengthening its overall offering in industrial safety markets. The markets reacted positively to the news, with HLMA shares showing slight gains in early trading.

Driver Breakdown:

• Market Synergies: E2S's focus on hazardous environments complements Halma's existing safety solutions, creating cross-selling opportunities.
• Geographic Expansion: E2S's presence in the UK, USA, and France provides Halma with increased market access.
• Regulatory Tailwinds: The increasing stringency of safety regulations in heavy industries supports long-term demand for E2S's products.

Marc Ronchetti, Group Chief Executive of Halma, commented: “We are excited that E2S is joining Halma. The company brings new capabilities in growing, highly regulated industrial safety markets which are critical in protecting human life, and solutions and technologies which are complementary to our existing strengths in fire safety and gas detection. We look forward to supporting their continued development as they continue to scale their business globally.”

Brett Isard, Co-founder and CEO of E2S said: “We're delighted to join Halma, whose values and focus closely align with ours. Joining the Halma group gives E2S access to global resources and expertise that will help accelerate the next phase of our growth.

“We are looking forward to benefiting from being part of a larger organisation as we continue to expand our product range, providing our customers and partners with innovative life safety solutions, protecting people and assets in harsh and hazardous environments.”