Halma, NovaBone, & the Healthcare M&A Strategy

Halma is a UK-listed serial acquirer of niche highly engineered industrial or medical products that dominate their respective small markets.The company was founded by David Barber who pioneered the model of rolling up and integrating industrial businesses that have strong market power and durable earnings. Barber’s philosophy, which still underpins Halma’s culture today, is best explained in this short speech.

Today, Halma is structured into three sectors with 50 operating companies: Safety, Medical, and Environmental and Analysis. Each sector has ~20%+ net margin and the group aims for 16% growth in profit before tax every year, half from organic growth and half driven by acquisitions. Halma aims to acquire 15-20 profitable, high quality companies each year and between 2003-13 the company paid on average ~8x EBIT.

The 20-year FCF CAGR is 15% and the 33-year dividend per share CAGR is 5%. This has led Halma to become one of the top performing UK businesses over the last 40 years.

Interview Transcript

Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.

This is a snippet of the transcript.to get full access.

Free Sample of 50+ Interviews

Or contact sales for full access

Already have an account? Sign in

Please Use PDF Download

HalmaHLMA

Why is Halma interesting?

Related Content

Lonza vs WuXi Biologics: BIOSECURE Act & U.S. Manufacturing Strategy

Profluent Bio: AI Protein Language Models for Gene Editor Design

Danaher: Cytiva / Pall Strategic Integration

Bergman & Beving: Evolution of the M&A Process

Interview Transcript

Free Sample of 50+ Interviews

Related Content

Lonza vs WuXi Biologics: BIOSECURE Act & U.S. Manufacturing Strategy

Former Senior Business Development Executive at Lonza

Profluent Bio: AI Protein Language Models for Gene Editor Design

Former Head of Business Development at Profluent Bio

Danaher: Cytiva / Pall Strategic Integration

Former Senior Director at Danaher

Bergman & Beving: Evolution of the M&A Process

Former M&A Executive at Bergman & Beving