Honeywell revealed that it has reached an agreement to buy CAES Systems Holdings for about $1.9 billion in cash from private equity company Advent International. This amounts to about 14 times the projected EBITDA for 2024, adjusted for taxes.
The defence technology solutions Honeywell offers for the land, sea, air, and space will be improved by this acquisition. New electromagnetic defence options for end-to-end radio frequency (RF) signal management will be among the solutions. The combined company will expand Honeywell’s established production and upgrade positions on critical platforms like F-35, EA-18G, AMRAAM, and GMLRS, while also introducing offerings on new platforms like Navy Radar (SPY-6) and UAS and C-UAS technologies. This will be made possible by CAES’ scalable offerings and Honeywell’s current defence and space portfolio. These projects are predicted to increase significantly in the future based on present and forecast demand.
According to Honeywell’s Chairman and CEO, Vimal Kapur, “this acquisition further positions Honeywell at the forefront of the defense industry’s most dynamic sectors and sets the tempo for continued growth across our aerospace business.” “With the integration of CAES’ solutions and capabilities, we will fortify our existing defence 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.”
President and CEO of Honeywell Aerospace Technologies Jim Currier stated, “The combination of our talented teams will diversify and deepen our expertise and specialized capabilities that enable us to scale current offerings and innovate new ones across critical military platforms. Top U.S. defence customers trust CAES, which enhances our existing relationships as we shape the future of the defence industry together.”
