Halma Share Price Fell 0.67% on the Rovers’ Acquisition for €85M

The Halma plc (LON: HLMA) share price fell 0.67% after announcing that it had acquired Rovers Medical Devices B.V. (Rovers). The company noted that Rovers is at the forefront of developing and producing specimen collection tools to detect and diagnose cervical cancer early. 

Among Rovers’ notable products is the Cervex-Brush®, internationally recognised as the benchmark in cervical cancer screening tests. Rovers' innovative solutions are distributed in over 90 countries worldwide, catering mainly to diagnostic medical firms and distributors in the healthcare sector, laboratories, research institutions, and governmental bodies.

The acquisition agreement involves an upfront payment of €85 million (around £73 million), accounted for on a cash- and debt-free basis, to be settled in cash utilising Halma's available resources. Furthermore, up to €6 million (about £5 million) may be payable in cash contingent upon Rovers' financial performance until 31 March 2025.

For the 12 months ending on 31 December 2023, Rovers reported unaudited revenues of €12.0 million (approximately £10.3 million), boasting a Return on Sales that significantly exceeds Halma's target range of 18-22%. Rovers is set to operate as an independent entity within Halma's Healthcare division, continuing under the direction of its existing leadership team.

Marc Ronchetti, Halma’s Group Chief Executive, said: “Rovers will broaden the range of markets we serve in women's health and further strengthen our Healthcare sector's position in cancer diagnosis products. We are excited by the opportunities we see to increase Rovers' positive impact on public health. We expect its future growth to be driven by increasing global cervical screening rates, supporting the World Health Organization's strategy to accelerate the early detection of cervical cancer.”

Roel Leenders, Chief Executive Officer of Rovers, said: “We want to contribute to the prevention of cancer on a global scale. This mission strongly aligns to Halma's when it comes to improving the quality of care for patients. Many physicians work with us to develop the highest quality screening products that are most effective for their patients. By joining the Halma group, Rovers can grow to the next level, adding talent development and commercial opportunities while collaborating with a global group of like-minded businesses, that will help us to enable better screening and diagnostics for patients worldwide.”

Halma share price. 

The Halma share price fell 0.67% to trade at 2285.0p from Friday’s closing price of 2300.5p.