Honeywell Acquiring RAE Systems for $340 Million
"RAE Systems' geographic, manufacturing, and distribution footprint, especially in high-growth countries like China, will help to make our already strong gas detection portfolio an even greater global franchise in a very good industry," said Mark Levy, president and CEO of Honeywell Life Safety.
Just a month before AIHce 2013, Honeywell announced April 23 it has finalized a definitive agreement to acquire RAE Systems, Inc., a privately held, San Jose, Calif.-based manufacturer of fixed and portable gas and radiation detections systems and software, for $340 million. The purchase price is approximately 13 times RAE Systems' estimated 2013 earnings before interest, taxes, depreciation, and amortization (EBITDA), Honeywell's news release says. The agreement is expected to close in the second quarter of 2013 and doesn't change Honeywell's 2013 full-year guidance.
RAE Systems' 2012 sales were about $107 million, it says.
"RAE Systems is a pioneer in the gas detection industry with unrivaled technologies," said Mark Levy, president and CEO of Honeywell Life Safety. "Their strong presence in hazardous material, first responder, and government complements our existing business very well, and their expertise in photo-ionization detection, wireless, and radiation detection represent terrific opportunities to expand our reach. RAE Systems' geographic, manufacturing, and distribution footprint, especially in high-growth countries like China, will help to make our already strong gas detection portfolio an even greater global franchise in a very good industry. RAE Systems is a very compelling strategic fit for Honeywell."
RAE Systems will be integrated into Honeywell Analytics, which is part of Honeywell Life Safety within Honeywell Automation and Control Solutions. The release also says the transaction builds on other successful acquisitions by Honeywell Life Safety, including Zellweger Analytics in 2005, First Technology in 2006, the gas detection businesses of Sperian in 2010, and Fire Sentry in 2012.