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- Honeywell Acquires CAES Systems Holdings for $1.9 Billion
Honeywell Acquires CAES Systems Holdings for $1.9 Billion
Slice of Manufacturing Team
June 26, 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)
Notable 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."
"The combination of our talented teams will diversify and deepen our expertise and specialized capabilities that enable us to scale current offerings and innovate new ones across critical military platforms."
"As a trusted supplier and mission partner to our customers across advanced RF capabilities, I couldn't be more excited to see CAES join the Honeywell team and work together to build on the outstanding expertise of both companies."
"This transaction marks a significant milestone for both parties, and we are confident that the business will continue to thrive and grow. Under Advent International's ownership, we have invested significantly in R&D, capital and capability enhancement, all of which has been pursued to drive growth and the development of cutting-edge capabilities. We believe this sale to a strong strategic home will secure its long-term future."
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.