Honeywell Acquires CAES Systems Holdings for $1.9 Billion
Slice of Manufacturing Team
06/25/2024
Key Highlights:
- Honeywell acquires CAES for $1.9 billion in all-cash transaction.
- Acquisition to enhance Honeywell's defense technology solutions.
- Combined offerings to grow Honeywell's production on critical platforms like F-35 and Navy Radar (SPY-6).
- Expected to be earnings accretive in the first full year of ownership.
- Transaction set to close in the second half of 2024.
Source (PR Newswire)
Quotes
“ "This acquisition further positions Honeywell at the forefront of the defense industry's most dynamic sectors and sets the tempo for continued growth across our aerospace business." ”
Vimal Kapur, Chairman and CEO at Honeywell
Our Take:
This strategic acquisition positions Honeywell as a leading force in the defense technology sector, enhancing its capabilities across critical platforms and expanding its offerings in RF, radar, and sensing technologies. The integration of CAES' scalable solutions and Honeywell's robust defense portfolio is poised to drive significant revenue growth, particularly in light of increasing demand for advanced defense systems. This move aligns well with Honeywell's broader strategy focused on automation, aviation, and energy transition, marking a significant step towards securing its market-leading position in the aerospace and defense industry.
