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Honeywell Strikes $1.9B All-Cash Deal for CAES; Vimal Kapur, Mike Kahn Quoted

Honeywell (Nasdaq: HON) has agreed to buy CAES from private equity firm Advent International in an all-cash deal valued at approximately $1.9 billion to expand its portfolio of defense technology platforms across ground, maritime, air and space domains.

Charlotte, North Carolina-based Honeywell said Thursday it expects the acquisition to wrap up in the second half of 2024, subject to regulatory approvals and other customary closing conditions, and to be accretive to adjusted earnings per share in the first full year of ownership.

The transaction will provide the multinational conglomerate access to CAES’ radio frequency technologies, automated facilities and skilled engineers, enabling Honeywell to advance long-term growth, strengthen customer offerings, broaden its aerospace operations and expertise and diversify revenue streams on critical defense systems.

Vimal Kapur, chairman and CEO of Honeywell, said the transaction will help improve the company’s presence in the defense industry and drive growth of its aerospace business.

“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,” added Kapur.

Upon the deal’s closing, Honeywell will absorb approximately 2,200 CAES employees and the latter’s 13 North America-based facilities.

“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,” said Mike Kahn, president and CEO of CAES.

“Our extraordinary talent, RF breadth and world-class manufacturing facilities will offer new opportunities and further drive innovation for our industry,” added Kahn, a two-time Wash100 awardee.

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