Yahoo Finance Honeywell to Buy CAES From Advent in $1.9 Billion Cash Deal
(Bloomberg) -- Honeywell International Inc. agreed to buy aerospace and defense company CAES Systems from private equity firm Advent International for $1.9 billion.
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The all-cash deal is expected to close in the second half of this year, Honeywell said Thursday in a statement. CAES, which develops electronic systems for aerospace and military use, is expected to bolster Honeywell’s positions on key defense programs including the F-35 fighter jet.
Bloomberg News reported in March that Advent was weighing a sale of CAES. The company generated roughly $110 million in earnings before interest, taxes, depreciation and amortization last year. The deal will add about 2,200 employees to Honeywell’s ranks.
CAES was formerly known as Cobham Advanced Electronic Solutions. Advent acquired the business as part of its purchase of UK-based defense firm Cobham Plc, which was completed in 2020. The buyout firm subsequently established CAES as a standalone entity.
Honeywell shares were little changed before US markets opened.
(Updates with confirmation of terms)
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