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Honeywell to Upgrade Offerings with CAES Acquisition

The combined company will grow Honeywell’s established systems and upgrade the F-35, EA-18G, AMRAAM and GMLRS platforms, while also introducing offerings on new platforms like Navy Radar (SPY-6) and UAS & C-UAS technologies By William Mackenzie / 21 Jun 2024
Honeywell to Upgrade Offerings with CAES Acquisition
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Honeywell is set to acquire CAES Systems Holdings LLC (CAES) from private equity firm Advent International.

The $1.9 billion acquisition will enhance Honeywell’s defense technology solutions across land, sea, air and space, including new electromagnetic defense solutions for end-to-end radio frequency (RF) signal management. 

With CAES’ scalable offerings and Honeywell’s current defense and space portfolio, the combined company will grow Honeywell’s established production and upgrade positions on critical platforms. This includes the 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. 

Based on current and anticipated demand, Honeywell asserts that these programs are expected to grow significantly in the years to come.

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.

This is the third acquisition Honeywell announced this year as part of its disciplined capital deployment strategy. The company is focused on acquisitions that will drive future growth across its portfolio, which is aligned with the three compelling megatrends of automation, the future of aviation and energy transition.

The CAES transaction is expected to close in the second half of 2024, subject to customary closing conditions, including receipt of certain regulatory approvals.

Vimal Kapur, Chairman and CEO of Honeywell, said; “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 defense 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.” 

Honeywell Aerospace Technologies President and CEO, Jim Currier, commented; “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.

“CAES’ trusted position with top U.S. defense customers strengthens our existing relationships as we shape the future of the defense industry together.”

Mike Kahn, President and CEO of CAES, stated; “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.

“Our extraordinary talent, RF breadth and world-class manufacturing facilities will offer new opportunities and further drive innovation for our industry.”

Shonnel Malani, Managing Partner at Advent International, added; “This transaction marks a significant milestone for both parties, and we are confident that the business will continue to thrive and grow.

“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.”

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