Halma Shares Edged 1.67% Higher After Acquiring the TeDan Group

The Halma plc (LON: HLMA) share price edged 1.67% higher after announcing that it had acquired the TeDan group of companies (TeDan), which includes multiple companies of TeDan Surgical Innovations, Inc., Axcess Surgical Innovations, LLC, West Coast Surgical, LLC,  and TeDan Surgical Innovations GmbH.

TeDan, a prominent player in the field of innovative surgical access systems, has its headquarters situated in Houston, Texas, and Half Moon Bay, California, USA. The company specialises in the development, manufacturing, and supply of surgical access systems for use in a wide range of acute therapeutic procedures.

Its primary focus is on access systems designed for spinal surgery, and the United States constitutes the largest share of its sales. The acquisition of TeDan comes with an initial cash consideration of US$89.1 million (approximately £72 million) on a cash- and debt-free basis.

The funding for this acquisition will be sourced from Halma's existing financial resources. After factoring in tax benefits with a net present value of around US$9.8 million (approximately £8 million), the net initial consideration amounts to approximately US$79.3 million (approximately £64 million).

TeDan reported unaudited consolidated revenue of US$29.2 million (approximately £24 million) for the 12-month period ending on March 31, 2023. 

Danny Fishman, Chief Executive Officer of TeDan, commented: “World spending on healthcare is increasing as demand continues to grow, especially as the number of people over 60 has reached more than one billion. For over ten years, TeDan has been at the forefront of surgical access innovation, creating an improved experience for surgeons in the operating room and better outcomes for patients. Joining Halma will help us to grow and invest in the U.S. and internationally. Together, we share a common purpose of ensuring a healthier future for everyone every day.”

Marc Ronchetti, Group Chief Executive of Halma, commented: “TeDan further extends the technologies and capabilities of our Healthcare sector in the treatment of patients in acute therapeutic settings. TeDan's growth is supported by the growing need for surgical treatment as populations age and as lifestyles evolve and by the development of innovative new surgical procedures which improve efficiency and standards of care. We are delighted to welcome the TeDan team to Halma and look forward to working with them to expand their global impact.”

Halma share price. 

The Halma share price rose 1.67% to trade at 2102.5p from Friday’s closing price of 2068.0p.