Honeywell To Buy CAES Systems From Advent Intl. In $1.9 Bln Cash Deal

(RTTNews) - Conglomerate Honeywell International Inc.(HON) announced Thursday that it has agreed to acquire CAES Systems Holdings LLC from private equity firm Advent International for around $1.9 billion in an all-cash deal.

The CAES deal is expected to be adjusted earnings per share accretive in the first full year of ownership. The acquisition is expected to close in the second half of 2024, subject to customary closing conditions, including receipt of certain regulatory approvals. It is not subject to any financing conditions.

Arlington, Virginia-based CAES, which provides mission critical electronic solutions for the aerospace and defense industry, has 13 facilities in North America, including highly automated manufacturing facilities. The acquisition will add around 2,200 employees and a deep bench of radio frequency or RF engineering talent.

The acquisition is projected to enhance Honeywell's defense technology solutions across land, sea, air and space, including new electromagnetic defense solutions for end-to-end RF signal management.

Vimal Kapur, Chairman and CEO of Honeywell, said, "With the integration of CAES' solutions and capabilities, we will fortify our existing defense offerings, while also expanding our capabilities in pivotal areas like RF, radar and sensing technologies, to ensure a market-leading position in areas that are critical for global security."