Halma Expands Infrastructure Reach with Brownline Acquisition

In a release on Tuesday, Halma PLC (LON:HLMA) announced the acquisition of Brownline, a Netherlands-based provider of advanced gyroscopic locating systems for horizontal directional drilling (HDD).

The move is expected to bolster Halma's Environmental & Analysis sector and strengthen its position in key infrastructure markets.

The cash consideration for Brownline is €150 million (approximately £129 million), funded from Halma's existing resources.

Brownline's unaudited revenue for the 12 months ending March 31, 2025, is projected at €37 million (approximately £32 million), suggesting a revenue multiple of approximately 4x. The transaction is expected to be immediately accretive to Halma's earnings.

Halma explained that Brownline's technology is crucial for trenchless underground drilling, serving the energy, fiber connectivity, and water sectors.

Its primary markets are North America, continental Europe, and the UK, with offices spanning the Netherlands, the US, Canada, the UK, and Australia, providing Halma with an expanded geographical reach.

Halma shares are up around 0.6% following the news. The stock has gained 22% this year and 27.6% in the last 12 months, currently trading around the 3,276p mark.

Marc Ronchetti, Group Chief Executive of Halma, commented: “Brownline's technology is a game-changer for safely installing underground infrastructure. Its ability to deliver pinpoint accuracy without surface disruption is increasingly vital as cities continue to expand and electrification accelerates.”

Ronchetti added that Brownline is a “strong strategic fit with Halma's purpose,” while it also supports the global energy transition.