Honeywell to Acquire CAES Systems for $1.9 Billion to Enhance Aerospace and Defense Technologies

Honeywell has agreed to acquire CAES Systems, a leading aerospace and defense technology company, from private equity firm Advent International for $1.9 billion. The acquisition, an all-cash deal, is part of Honeywell's strategic realignment to focus on megatrends like automation, aviation, and energy transition.

CAES specializes in the development of advanced electronics such as antenna systems and communication networks for aerospace and defense companies. The deal is expected to strengthen Honeywell's defense technology solutions across land, sea, air, and space, and enhance its position in critical platforms including F-35, EA-18G, AMRAAM, and GMLRS. It will also add approximately 2,200 employees and automated facilities to Honeywell's aerospace operations.

This acquisition marks Honeywell's third acquisition this year and is expected to close in the second half of 2024. The company anticipates that the deal will be accretive to its adjusted earnings per share in the first full year of ownership.