Company Traded Almost $2 Billion to Build Their Portfolio

Honeywell announced on September 4 that its $1.9 billion acquisition of CAES System Holdings had been completed. The transaction aims to assist in long-term growth and diversify the company’s aerospace revenue streams.

The initial agreement was made on June 20. Honeywell agreed on an all-cash offer in exchange for Cobham Advanced Electronic Solutions (CAES), including their 2,200 employees and established facilities.

CAES is part of British defense and aerospace contractor Cobham. This company was purchased by Advent for $5 billion in 2020. Three years later, Advent sold Cobham’s space-related assets to a separate firm. Advent’s remaining portion of Cobham, a ground-based satellite communications company called Cobham Satcom, will not be transferred in the Honeywell deal.

Honeywell sees the acquisition as an opportunity to expand its defense and space involvement. The company intends to utilize CAES’s radio frequency technology to grow its international presence and develop a deeper aerospace reputation. Honeywell will also be able to bolster production on F-35, EA-18G, AMRAAM, and GMLRS and implement its existing technology on new platforms, like the Navy Radar (SPY-6).

"Honeywell's acquisition of CAES builds on our leading position in defense technologies, while also strengthening and expanding the solutions and capabilities we can offer across multiple critical military platforms," explained Jim Currier, Honeywell Aerospace Technologies President and CEO. "Together with CAES, we will continue to set the standard for excellence in the industry and deliver specialized solutions that will keep our customers at the forefront of innovation."

This is Honeywell’s fourth major purchase of the year. It announced plans to gain Civitanavi Systems, a navigation and timing technology manufacturer, for $200 million in March, Then, in June, the company finalized its acquisition of Carrier's Global Access Solutions business, putting them on track with current automation megatrends.

FMI: www.honeywell.com