Honeywell Strengthens Its Defense Portfolio with a Massive $1.9 Billion Deal for CAES Systems
Honeywell International (HON) shares saw a rise on Thursday as the company announced its plan to acquire aerospace and defense firm CAES Systems Holdings from private equity group Advent International for roughly $1.9 billion.
Honeywell disclosed that the entirely cash-based transaction “will bolster Honeywell’s defense technology portfolio across terrestrial, maritime, aerial, and extraterrestrial domains, including advanced electromagnetic defense solutions for comprehensive radio frequency (RF) signal management.”1
The firm further noted that this acquisition will reinforce its existing platforms and elevate its positions in several essential areas, including contributions to the F-35 fighter jet and the Navy’s SPY-6 radar.
CAES Offers Prospect for ‘Continual Growth’
Chief Executive Officer (CEO) Vimal Kapur stated that integrating CAES will elevate Honeywell’s prominence “at the forefront of the defense sector’s most dynamic regions and sets the groundwork for continual growth in our aerospace segment.”
CAES operates 13 facilities throughout North America and employs around 2,200 personnel.
Honeywell mentioned that the agreement is expected to finalize in the latter part of 2024 and will positively impact adjusted earnings per share (EPS) “in the first full year of ownership.”
