Honeywell said Thursday it is expanding again, this time with a $1.9 billion acquisition that the company believes will improve its defense technology work.
The Charlotte-based manufacturing company bought CAES Systems Holdings LLC (CAES) from private equity firm Advent International in an all-cash transaction. The deal is expected to close in the second half of the year.
The deal will add 2,200 employees, including radio-frequency engineers. It will also help Honeywell provide new aerospace tech products, such as electromagnetic defense solutions for end-to-end radio frequency signal management, as well as help grow existing production.
With this acquisition, Honeywell said it can offer products on new platforms such as drones and 3-D radars. Honeywell said it expects demand for these programs will grow, setting it up for revenue diversification and growth related to its aerospace technologies business.
Other Honeywell deals
This is Honeywell’s second acquisition in June and its third this year.
In early June, it finalized plans to acquire Carrier’s Global Access Solutions business for nearly $5 billion, a business line focused on digital security. And Honeywell acquired aerospace and defense manufacturer Civitanavi Systems in March for approximately $214.3 million.
These deals are part of Honeywell’s capital development strategy, which the company said aligns with trends in automation and the future of aviation and energy transition.
About CAES
CAES manufactures electronic products for the aerospace and defense industry. The Virginia-based company employs over 2,700 people across 13 sites in North America.
Advent International acquired CAES in 2020 as part of its $5.1 billion acquisition of British-based Cobham Plc.
About Honeywell
Honeywell manufactures aerospace products, building technologies, performance materials and other technologies. It also provides safety and productivity services.
Honeywell employs 95,000 employees worldwide, including 33,000 people in the U.S. and 1,300 in Charlotte. It moved its global headquarters to Charlotte in 2018.
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