Resistor Business Acquired
Halma PLC
6 March 2000
HALMA ACQUIRES RESISTOR BUSINESS
Global Enhancement of Specialist Electrical Technology
The Directors of Halma p.l.c. announce that on Friday 3 March 2000 the Group
completed the purchase of the resistor business and assets of Cutler-Hammer
from Eaton Corporation. Cutler-Hammer is the principal manufacturer of
resistors for use in transportation and electrical controls and is based in
Milwaukee, Wisconsin in the USA, Melton Constable, Norfolk in the UK and
Airdrie, Alberta in Canada. Halma already has great strength in resistors,
and the acquired business will be consolidated into existing operations.
Cutler-Hammer's innovative resistor technologies will enhance the Group's
in-depth technical expertise and extensive product range, especially in the
areas of high voltage electrical distribution and rail transit. These
products play key roles in ensuring the safe operation of national electrical
and railway networks.
Unaudited accounts for the year ended 31 December 1999 show sales of
$10,642,000. The consideration is $7,710,000 in cash based on combined net
tangible assets as at 29 February 2000 of $3,658,000.
Stephen O'Shea, Halma Group Chief Executive commented, 'As I stated in the
1999 Annual Report, high power resistors are one of our strongest product
areas. This acquisition, following the Mosebach purchase in the prior
financial year, complements and builds upon that strength, particularly in our
most important geographical markets. It brings important new technology and
customer penetration in the areas of locomotive braking resistors and light
transit braking resistors. In addition, Cutler-Hammer is one of the key global
OEMs for resistor products and this allows us to become a supplier for their
future resistor needs. This is an acquisition where we are able to bring our
considerable intellectual capital to bear on a new group of related assets
with a high probability of a very successful outcome.'
Copies of this announcement may be obtained from the company's registered
office for a period of 14 days and at the Company Announcements Office of the
London Stock Exchange for two days from the date of this announcement.
Press Contact: Mr Stephen R O'Shea
Chief Executive, Halma p.l.c.
Tel: +44 (0) 1494 721111
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