The Halma plc (LON: HLMA) share price rose after announcing that it had acquired Sewertronics, a firm specialising in repairing sewer lines without digging trenches. The company has patented technology that allows it to insert a lining into the pipe and cure it using UV light.
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The acquisition will cost Halma a cash consideration of €41m (approx. £36m) and will be funded from the company’s existing cash reserves. In addition, Halma could pay an additional consideration of up to €18m (approx. £16m) once certain conditions are met after the purchase.
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Halma expects to complete the acquisition by the end of May 2023 after certain closing conditions are met. Sewertronics is based in Rzeszów, Poland, and has sales and service partners in most regions.
Sewertronics revenues for the twelve months to 31 December 2022 was €8.1m (approx. £7.1m). Halma plans to have the firm as a standalone entity within its portfolio of businesses operating in Halma's Environmental & Analysis sector.
The sewer repairs company will have to cooperate with Minicam and Dancutter, Halma’s portfolio companies operating in the same end-user markets.
Marc Ronchetti, Halma’s Group CEO, commented: “Sewertronics is highly aligned to our purpose, helping to protect the environment by reducing blockages and leakage in wastewater pipes. We expect Sewertronics' growth to be driven by the increasing need to repair ageing wastewater infrastructure and reduce wastewater leaks, and by investing in innovative technologies which minimise the disruption to surrounding infrastructure and reduce the resources required to carry out repairs.”
César Gómez, Sewertronics Founder and CEO, commented: “Overcrowded cities, heavy downpours and climate change are all putting increasing pressure on wastewater infrastructure. Our technology helps prevent wastewater pollution while maximising efficiency and safety when repairing pipes and avoiding disruptive and expensive excavation. Sewertronics is highly aligned with Halma's purpose of daily growing a safer, cleaner, healthier future for everyone. By joining Halma, we will benefit from its global network, resources and expertise and collaboration with other Halma companies, particularly those focused on solutions for the wastewater sector.”
Halma shares rose on optimism about the deal and fell due to the small size of the deal.
*This is not investment advice.
Halma share price.
The Halma share price spiked 0.94% higher to trade at 2410.0p, from Thursday’s closing price of 2387.5p, before falling back.
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