Honeywell Bolsters Defense Strategies with a $1.9 Billion Acquisition of CAES Systems
Honeywell International (HON) stocks experienced an increase on Thursday as the corporation declared its intention to acquire aerospace and defense contractor CAES Systems Holdings from private equity firm Advent International for approximately $1.9 billion.
Honeywell stated that the fully cash-based transaction “will enhance Honeywell’s defense technology offerings across land, sea, air, and space, including innovative electromagnetic defense systems for comprehensive radio frequency (RF) signal management.”1
The organization further indicated that the acquisition will strengthen its established platforms and elevate positions in several crucial domains, inclusive of work on the F-35 fighter jet as well as the Navy’s SPY-6 radar.
CAES Provides Opportunity for ‘Ongoing Expansion’
Chief Executive Officer (CEO) Vimal Kapur mentioned that incorporating CAES will enhance Honeywell’s standing “at the leading edge of the defense sector’s most evolving areas and establishes the framework for ongoing expansion throughout our aerospace division.”
CAES operates 13 facilities across North America and has a workforce of approximately 2,200 individuals.
Honeywell indicated that the deal is anticipated to conclude in the latter half of 2024 and will be accretive to adjusted earnings per share (EPS) “in the initial complete year of ownership.”
