Honeywell to acquire CAES Systems for about $2 billion in third deal of 2024

By Ciara Linnane

Deal is expected to boost Honeywell's defense technology business across land, sea, air and space

Honeywell International Inc. has agreed to a roughly $2 billion deal to acquire aerospace and defense company CAES Systems from private-equity firm Advent International, confirming a report in the Wall Street Journal earlier Thursday.

The all-cash deal for CAES, formerly known as Cobham Advanced Electronic Solutions, "will enhance Honeywell's (HON) defense technology solutions across land, sea, air and space, including new electromagnetic defense solutions for end-to-end radio frequency (RF) signal management," the company said in a statement.

CAES, which is headquartered in Arlington, Va., designs, develops and tests electronics ranging from antenna systems to communication networks for aerospace and defense companies. The company employs about 2,200 people at 13 facilities in North America, including some highly automated ones with fully automated test and tuning processes.

"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," Honeywell Chief Executive Vimal Kapur said in prepared remarks.

The deal is expected to boost adjusted per-share earnings in the first full year of ownership.

The deal is the third acquisition for Honeywell this year.

In March, Honeywell said it would acquire Italy's Civitanavi Systems, an aircraft components manufacturer and developer.

In June, the company announced the closing of its $4.95 billion acquisition of Carrier Global Corporation's Global Access Solutions business.

The stock was down 0.5% premarket but has gained 1.5% in the year to date, while the S&P 500 has gained 15%.

-Ciara Linnane

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06-20-24 0721ET

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