Last updated on April 21, 2014 at 9:29 EDT

Acquisition of MicroSurgical Technology, Inc. by Halma plc

December 19, 2012

LONDON, December 19, 2012 /PRNewswire/ –

Halma [http://www.halma.com ], the leading safety, health and environmental technology
group, today announces that the acquisition of MicroSurgical Technology, Inc. (“MST”) was
completed on 18 December 2012.

MST [http://www.mst-surgical.com ] designs, manufactures and markets ophthalmic
surgical products, focusing on single-use devices used in cataract surgery. MST is located
in Redmond, Washington, USA. The initial cash consideration is $57.0 million (GBP35.2
million) for the share capital plus $2.0 million (GBP1.2 million) for cash retained in the
business. The combined consideration is adjustable Dollar for Dollar if the level of
working capital at closing falls outside an agreed range.

Contingent consideration of up to $43.0 million (GBP26.5 million) is payable if
earnings for the two years to March 2015 exceed pre-determined targets. Audited accounts
for the full financial year ended 31 December 2011 show revenue of $20.4 million (GBP12.6
million). Unaudited accounts for the first nine months of the financial year ended 31
December 2012 show revenue of $17.1 million (GBP10.6 million).

MST is being acquired from management and several private shareholders. Existing
management will remain in place and will continue to operate the business in Redmond. The
acquisition, which is expected to be immediately earnings-enhancing, has been funded from
Halma’s cash and debt facilities.

MST will join Halma’s Health and Analysis sector within the Health Optics sub-sector
which includes our other market-leading ophthalmic device businesses: Accutome, Keeler,
Medicel, Riester and Volk.

Andrew Williams, Halma’s Chief Executive, commented:

“The acquisition of MST continues our strategy of focusing on critical products in
niche markets with strong growth drivers, expanding our surgical product offering in
ophthalmology. The international presence of our other ophthalmic product businesses
offers exciting growth opportunities for MST under Halma’s ownership.”


        1) Exchange rate used: US$1.62/GBP1.
        2) MST is an ophthalmic surgical device business focused on innovations for
          cataract surgery. A physician founded the company in 1976 and growth accelerated
          following a management buy-out in 2007. MST's work with key opinion leading ophthalmic
          surgeons led to the development and marketing of the Malyugin Ring(R), which is
          recognized as the product of choice by US Ophthalmic surgeons for mechanical dilation
          of the pupil/iris during difficult or complex cataract surgeries. MST's other market
          leading products include the Ahmed Micro-Set, Barrett Irrigation/Aspirator, MST
          Capsule Retractors, Dewey Radius and Packard Phacoemulsification Tips and Packer/Chang
          IOL Cutters. Cataracts are the leading cause of blindness worldwide and cataract
          surgery is growing rapidly now that replacing a diseased lens with a new artificial
          lens can restore sight. Another Halma company, Medicel, manufactures devices used to
          remove the old lens and insert the new one. An increasing number of cataract surgeries
          are classified as complex, typically when drugs used to dilate the pupil do not work
          due to interference from other patient medication. In these cases, mechanical dilation
          of the pupil is necessary to conduct the lens replacement surgery and the Malyugin
          Ring replaces traditional methods which can damage surrounding tissue. MST controls
          the IP for the Malyugin Ring through manufacturing and process know-how together with
          US, European and international patents (some of which are pending).
        3) Halma buys successful businesses in safety, health and environmental markets
          and helps them grow further through investment targeted towards increasing innovation,
          management development and international expansion. In the past 10 years Halma has
          spent over GBP350m acquiring more than 25 businesses with deal sizes ranging from
          GBP70m down to below GBP1m. Although businesses have been acquired in all areas of our
          activity, the majority of recent acquisitions has been in the Health & Analysis
        4) This statement is not intended to constitute a profit forecast for the
          current financial period or for any future period. In addition, this statement should
          not be taken to mean that the earnings per share of Halma will necessarily match or
          exceed the historic reported earnings per share of Halma.

Malyugin Ring(R) is a registered trademark of MicroSurgical Technology, Inc.

For further information, please contact:

        Halma plc
        Tel: +44(0)1494-721111
        Andrew Williams, Chief Executive
        Kevin Thompson, Finance Director

        MHP Communications
        Tel: +44(0)20-3128-8100
        Rachel Hirst / Andrew Jaques

SOURCE Halma plc

Source: PR Newswire