In a bid to strengthen its foothold in safety and environmental monitoring solutions, Honeywell International Inc. HON recently announced the buyout of Rebellion Photonics. The terms of the deal were kept under wraps.
Founded in 2009, Houston-based Rebellion Photonics is engaged in offering visual monitoring solutions for petrochemical, oil and gas as well as power industries. Some notable solutions offered by the company are its patented gas cloud imaging system, fire detection, intrusion detection and surveillance monitoring solutions, among others. The company’s visual monitoring platform is the only real-time solution available in the industry that helps in detecting and quantifying gas releases for enhancing workers’ safety.
Notably, Honeywell will integrate Rebellion Photonics into its Safety and Productivity Solutions segment.The company believes that the buyout will augment its solid portfolio of automation, process technologies and gas detection solutions. As noted by the company, it will also work on deploying the acquired Rebellion technology through its Performance Materials and Technologies segment in order to ensure the safety and compliance of its process manufacturing customers.
Honeywell’s financial guidance for 2019 remained unchanged following the move.
Honeywell is experiencing strength in its long-cycle businesses in U.S. defense, warehouse automation, process solutions and building technologies. It is also witnessing robust demand for aftermarket service business. Strength in the company’s process solutions business, driven by solid automation portfolio, coupled with strong demand for equipment, is likely to keep boosting revenues of its Performance Materials and Technology segment.
However, lower volumes of sales due to softness in its productivity products business, distributor destocking and fewer large project rollouts remain a concern for its Safety and Productivity Solutions segment.
Year to date, the Zacks Rank #3 (Hold) company’s shares have gained 33.5% compared with the industry’s rally of 28.2%.
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