- Purchase price of $4.95
billion represents ~13x 2023E EBITDA, inclusive of tax
benefits and run-rate cost synergies
- Acquisition will strengthen Honeywell's strategic alignment
to the megatrend of automation, underpinned by
digitalization
- Transaction will be immediately accretive to Honeywell's
growth, gross margins and operating margins; cash-EPS accretive in
the first full year of ownership
- By fifth full year of Honeywell ownership, acquisition will
achieve a double-digit cash-ROIC
CHARLOTTE, N.C., Dec. 8, 2023
/PRNewswire/ -- Honeywell (Nasdaq: HON) today announced
plans to enhance and strengthen its building automation
capabilities with the acquisition of Carrier Global Corporation's
(NYSE: CARR) Global Access Solutions business for
$4.95 billion, in an all-cash
transaction. This acquisition will enable Honeywell to become a
leading provider of security solutions for the digital
age.
The acquisition, which includes both hardware and software
solutions, further supports Honeywell's recently
announced plans to align its portfolio to three compelling
megatrends: automation, the future of aviation and energy
transition, underpinned by robust digitalization capabilities and
solutions. The Global Access Solutions business will enhance
Honeywell Building Technologies' business model of leading with
high-value products that are critical for buildings.
The business brings an attractive growth and margin profile that
will be accretive to Honeywell with valuable software content,
resilient business model and strong sources of recurring
revenue. The acquisition will add three respected brands to
Honeywell's portfolio with a focus on life safety and digital
access solutions, including:
- LenelS2, a leading business for over 25 years in
commercial and enterprise access solutions, including well-known
offerings OnGuard and NetBox, used by numerous Fortune 100
customers.
- Onity, which offers electronic locks, including
hospitality access, mobile credentials, and self-storage access.
Nine of the ten top hotel chains are customers.
- Supra's cloud-based electronic real estate lockboxes
offer mobile credentials and access management, as well as a
leading digital platform to optimize scheduling for property
showings.
When the deal closes, the combined company will be able to
accelerate innovation, bringing products and capabilities to
customers that are increasingly moving to cloud-based services and
solutions.
"Honeywell's strong track record delivering building automation
products and services makes this a natural fit that will create a
leading security platform with forecasted annual revenue in excess
of $1 billion," said Vimal Kapur, Chief Executive Officer, Honeywell.
"By leveraging the capabilities of the combined company's advanced
security and safety systems, customers will be able to maximize
their performance, efficiency and cost-effectiveness and create
long-term, sustainable value."
The purchase price represents approximately 13x 2023E EBITDA,
inclusive of tax benefits and run-rate cost synergies. The
transaction is expected to be cash-EPS accretive in the first full
year of ownership.
The transaction is expected to close by the end of the third
quarter of 2024, subject to customary closing conditions, including
receipt of certain regulatory approvals.
Evercore Inc. is serving as financial advisor to Honeywell.
Skadden, Arps Slate, Meagher & Flom, Simmons & Simmons and Womble Bond Dickinson are providing
external legal counsel.
Note to editors: Carrier Global Corporation today issued a
separate press release on the transaction. Click here for that
announcement.
About Honeywell
Honeywell is an integrated operating company serving a broad
range of industries and geographies around the world. Our
business is aligned with three powerful megatrends – automation,
the future of aviation and energy transition – underpinned by our
Honeywell Accelerator operating system and Honeywell Connected
Enterprise integrated software platform. As a trusted partner, we
help organizations solve the world's toughest, most complex
challenges, providing actionable solutions and innovations that
help make the world smarter, safer and more sustainable. For
more news and information on Honeywell, please visit
www.honeywell.com/newsroom
This release contains certain statements that may be deemed
"forward-looking statements" within the meaning of Section 21E of
the Securities Exchange Act of 1934. All statements, other than
statements of historical fact, that address activities, events or
developments that we or our management intends, expects, projects,
believes or anticipates will or may occur in the future are
forward-looking statements. Such statements are based upon certain
assumptions and assessments made by our management in light of
their experience and their perception of historical trends, current
economic and industry conditions, expected future developments and
other factors they believe to be appropriate. The forward-looking
statements included in this release are also subject to a number of
material risks and uncertainties, including but not limited to
economic, competitive, governmental and technological factors
affecting our operations, markets, products, services and prices.
Such forward-looking statements are not guarantees of future
performance, and actual results, developments and business
decisions may differ from those envisaged by such forward-looking
statements. We identify the principal risks and uncertainties that
affect our performance in our Form 10-K and other filings with the
Securities and Exchange Commission.
Contacts:
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|
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Media
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Investor
Relations
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Stacey Jones
|
Sean Meakim
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(980) 378-6258
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(704)
627-6200
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Stacey.Jones@honeywell.com
|
Sean.Meakim@honeywell.com
|
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SOURCE Honeywell