Halma snaps up electrical testing firm MK Test for £44m
Safety equipment and life-saving tech group
MK Test was founded in 1990 and makes safety-critical electrical testing technology used in high voltage electrical systems in aerospace, rail and commercial EV industries.
The company generated revenues of £12.4m and achieved return on sales "substantially above the upper end of Halma's target range of 18-22%", Halma said in a statement.
The deal, which was made a on a cash- and debt-free basis, will be funded from Halma's existing facilities.
"MK Test further enhances our capabilities in electrical safety and brings new opportunities for growth, driven by increasing safety regulation and the need to protect high value assets. Its technology plays an important role in automated electrical testing and in ensuring the integrity of electrical systems," said Halma chief executive Marc Ronchetti.
"We are delighted to welcome MK Test and to support its development as it continues to scale its business globally."
Halma's stock was up 0.3% at 2,214p by 0837 BST.
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.