Honeywell has agreed to acquire CAES Systems Holdings LLC (CAES), which will enhance Honeywell’s defence technology solutions across land, sea, air and space.
This will include new electromagnetic defence solutions for end-to-end radio frequency (RF) signal management. Honeywell completed the purchase from private equity firm Advent International for approximately $1.9 billion in an all-cash transaction. This represents approximately 14x estimated 2024 EBITDA on a tax-adjusted basis.
“This acquisition further positions Honeywell at the forefront of the defence industry’s most dynamic sectors and sets the tempo for continued growth across our aerospace business,” said Vimal Kapur, Chairman and CEO of Honeywell. “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.”
Headquartered in Arlington, Va., CAES (formerly known as Cobham Advanced Electronic Solutions) has 13 facilities in North America, including highly automated manufacturing facilities with fully automated test and tuning processes. The acquisition will add approximately 2,200 employees and a deep bench of RF engineering talent.
“The combination of our talented teams will diversify and deepen our expertise and specialised capabilities that enable us to scale current offerings and innovate new ones across critical military platforms,” said Honeywell Aerospace Technologies President and CEO Jim Currier. “CAES’ trusted position with top U.S. defence customers strengthens our existing relationships as we shape the future of the defence industry together.”
Looking ahead, Honeywell sees attractive opportunities to expand the combined solutions internationally, capitalizing on accretive growth spaces with select defense customers.
“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,” said Mike Kahn, President and CEO of CAES. “Our extraordinary talent, RF breadth and world-class manufacturing facilities will offer new opportunities and further drive innovation for our industry.”
“This transaction marks a significant milestone for both parties, and we are confident that the business will continue to thrive and grow,” said Shonnel Malani, Managing Partner at Advent International. “Under Advent International’s ownership, we have invested significantly in R&D, capital and capability enhancement, all of which has been pursued to drive growth and the development of cutting-edge capabilities. We believe this sale to a strong strategic home will secure its long-term future.”
This is the third acquisition Honeywell announced this year as part of its disciplined capital deployment strategy.
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