Christine Thropp
Honeywell will purchase CAES Systems Holdings from private equity firm Advent International for approximately $1.9 billion in an effort to enhance its defense technologies in air, land, sea and space domains.
The all-cash transaction will bring CAES’ radio frequency technologies, skilled engineers and automated facilities to Honeywell and help the latter expand aerospace expertise and operations, drive long-term growth, diversify revenue streams as well as boost customer offerings, the Charlotte, North Carolina-based multinational conglomerate said Thursday.
Approximately 2,200 CAES employees, including RF engineering talent, will join Honeywell and 13 company facilities in North America will be added to the former’s assets upon the completion of the acquisition.
“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,” commented Mike Kahn, president and CEO of CAES and a previous Wash100 awardee. “Our extraordinary talent, RF breadth and world-class manufacturing facilities will offer new opportunities and further drive innovation for our industry.”
The transaction is expected to be completed in the second half of 2024, subject to customary closing conditions.
Vimal Kapur, chairman and CEO of Honeywell, anticipates the acquisition’s support in maintaining the company’s defense industry position and continuing the 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,” said Kapur.
