Bussiness
Honeywell to buy aerospace and defense firm CAES Systems for $1.9 billion
(Reuters) -Honeywell has agreed to buy aerospace and defense technology company CAES Systems for $1.9 billion from private equity firm Advent International, it said on Thursday, to give a boost to the manufacturing giant’s aerospace technologies unit.
The all-cash deal to buy CAES, which develops electronics such as antenna systems and communication networks for aerospace and defense companies, marks Honeywell’s third acquisition so far this year.
The latest deal comes at a time when top defense firms have seen orders surge in response to drawn out conflicts, including the Russian aggression against Ukraine and the ongoing war in Gaza.
The CAES acquisition is expected to improve and expand Honeywell’s defense technology solutions across land, sea, air and space.
“CAES’ trusted position with top U.S. defense customers strengthens our existing relationships,” said Honeywell Aerospace Technologies President and CEO Jim Currier, in a statement.
Honeywell embarked upon a realignment of its business in October 2023 to focus on megatrends such as automation, aviation and energy transition.
The deal will provide Honeywell with additional automated facilities and about 2,200 employees, many of them highly skilled engineers who could boost the company’s aerospace operations, Honeywell said.
To bolster growth, the company has, in the past few years, doubled down on mergers and acquisitions to strengthen high-performing segments, while spinning off units that don’t align with its growth strategy.
The CAES deal, which is expected to close in the second half of 2024, will add to Honeywell’s adjusted earnings per share in the first full year of ownership, the company said.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Janane Venkatraman and Shailesh Kuber)