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.

Download Center

  • Lone Worker Safety Guide

    As organizations digitalize and remote operations become more commonplace, the number of lone workers is on the rise. These employees are at increased risk for unaddressed workplace accidents or emergencies. This guide was created to help employers better understand common lone worker risks and solutions for lone worker risk mitigation and incident prevention.

  • Online Safety Training Buyer's Guide

    Use this handy buyer's guide to learn the basics of selecting online safety training and how to use it at your workplace.

  • COVID Return-to-Work Checklist, Fall 2021

    Use this checklist as an aid to help your organization return to work during the COVID-19 pandemic in a safe and healthy manner.

  • SDS Buyer's Guide

    Learn to make informed decisions while searching for SDS Management Software.

  • Risk Matrix Guide

    Risk matrices come in many different shapes and sizes. Understanding the components of a risk matrix will allow you and your organization to manage risk effectively.

  • Industry Safe

Featured Whitepapers

OH&S Digital Edition

  • OHS Magazine Digital Edition - October 2021

    October 2021

    Featuring:

    • TRAINING
      On Route To Safe Material Handling
    • SAFETY CULTURE
      Normalization of Deviations in Performance
    • IH:INDOOR AIR QUALITY
      Arresting Fugitive Dusts
    • PPE:FOOT PROTECTION
      Safety Shoes Make the Outfit for Well-Protected Workers
    View This Issue