Halma acquires pipeline renovation firm Sewertronics

A Polish pipeline repair company is the latest company acquired by Halma.

Sewertronics has agreed to be pre-purchased by the British safety equipment maker for €41 million (approximately £36 million), with up to €18 million in additional payouts, subject to meeting certain closing conditions.

Based in Rzeszów in southeastern Poland, the company specializes in repairing sewage pipes by coating them with a coating material that is then cured using ultraviolet LED technology.

Aside from not requiring any trenching, Halma said the company’s technology is more efficient, environmentally friendly, less disruptive and safer than using hot water or steam.

The Buckinghamshire-based group said the company would be integrated into its environmental and analytics segment and would partner with manufacturing subsidiaries Minicam and Dancutter.

The deal is expected to close at the end of May.

Sewertronics represents Halma’s third acquisition since the start of 2023, having bought FirePro, a designer of fire suppression systems, and Thermocable, a manufacturer of water leakage and heat detection equipment, three months ago in March.

In the previous year, Halma, which is listed on the FTSE 100, acquired four companies including US-based IZI Medical Products for £138 million, Weetech Holdings and underwater robot maker Deep Trekker.

Buying more companies has been a central pillar of the company’s expansion and has helped boost profits for the past 19 consecutive years.

Marc Ronchetti, who became Halma’s CEO last month, said: ‘Sewertronics fits well with our purpose and helps to protect the environment by reducing blockages and leaks in waste water pipes.

He added that the company’s growth would benefit from the increasing importance of restoring old wastewater infrastructure and investment in machinery that minimizes disruption to surrounding areas from repairs.

In recent years, the UK’s water industry has been the target of increasing public anger over concerns that they have failed to prevent massive amounts of sewage from being pumped into Britain’s rivers and coastal areas.

More than 301,000 sewage discharges were made into English waterways and seas in 2022, according to the Environment Agency, with United Utilities and Yorkshire Water the biggest offenders.

While this was a drop of almost a fifth from the previous year, the regulator attributed the drop to unusually dry weather rather than the actions of the water industry.

Last week the government announced it would be introducing legally binding targets with the aim of eliminating waste water discharges into Britain’s rivers by the middle of the century.

Cesar Gomez, CEO and founder of Sewertronics, said, “Overcrowded cities, torrential downpours and climate change are all putting increasing pressure on wastewater infrastructure.”

“Our technology helps prevent wastewater contamination while maximizing efficiency and safety in pipe repair and avoiding disruptive and costly excavation work.

‘Sewertronics aligns well with Halma’s goal to create a safer, cleaner and healthier future for everyone every day.’

Halma shares were 0.1 per cent higher at £23.90 late Friday afternoon and are up about 17 per cent since the start of the year.