Halma is a best-in-class serial acquirer for niche manufacturing businesses. In 1972, David Barber founded the company with a clear set of principles to grow by acquisition:
- Use internally generated cash, not equity
- Buy similar businesses that you already own
- Focus on bolt-ons or quasi-bolt-ons, rarely move into new areas
Since then, HLMA has compounded EBIT 15.3% and dividend per share ~4% for almost 50 years.