Honeywell Acquiring RAE Systems for $340 Million -- Occupational Health & Safety

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.

Apr 24, 2013

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.

Product Showcase

Glove Guard® Clip

Safety should never be compromised, especially when it comes to proper glove usage. The Glove Guard® clip enhances safety by encouraging employees to keep their gloves with them at all times. This reduces the risk of accidents and injuries on the job. By ensuring everyone has their gloves readily available, we help promote a culture of safety and efficiency. The Glove Guard® clip is designed to withstand the toughest work environments. Constructed from robust materials made in the USA, it can endure extreme conditions, including harsh weather, and rigorous activities. 3
Safety Shower Test Cart

The Safety Shower Test Cart speeds up and simplifies emergency shower tests, ensures you stay in compliance with OSHA regulations, and significantly reduces testing costs. With 7 unique features, the cart makes testing easy, effective, and efficient. You can test water clarity, flow, temperature, and spread—all at the same time! Most safety shower testing kits create a mess, take too much time to use, and don't fully help you stay in compliance with OSHA & ANSI standards. Transform the way you test emergency showers with Green Gobbler Safety. 3
Magid® D-ROC® GPD412 21G Ultra-Thin Polyurethane Palm Coated Work Gloves

Magid’s 21G line is more than just a 21-gauge glove, it’s a revolutionary knitting technology paired with an advanced selection of innovative fibers to create the ultimate in lightweight cut protection. The latest offering in our 21G line provides ANSI A4 cut resistance with unparalleled dexterity and extreme comfort that no other 21-gauge glove on the market can offer! 3