Honeywell to Acquire CAES Systems from Advent in $1.9B Deal 

Honeywell International reached a roughly $1.9 billion all-cash deal to buy aerospace and defense technology company CAES Systems from private equity firm Advent International. 

The acquisition will bolster Honeywell’s current scope of work on platforms like the F-35, EA-18 Growler, AMRAAM air-to-air missile and GMLERS guided missiles, as well as expand Honeywell’s portfolio to add work on the SPY-6 naval radar, drone and counter-drone technologies, the company said. 

This is Honeywell’s third acquisition of the year to expand its aerospace technologies unit. In March, the company announced it would acquire Italy’s Civitanavi Systems, an aircraft components manufacturer and developer. It completed a $4.95 billion acquisition of Carrier Global Corporation’s global access solutions business earlier this month. 

Arlington, VA-based CAES, formerly known as Cobham Advanced Electronic Solutions, specializes in antennas, radio frequency (RF) technologies and signal management capabilities that are used to build electronic warfare systems, missiles and radar. 

“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,” said Vimal Kapur, chairman and CEO of Honeywell. 

The acquisition is expected to add about 2,200 employees, with Honeywell touting the company’s “deep bench of RF engineering talent” and “highly automated manufacturing facilities.” The electronics company has 13 facilities in North America. 

The transaction, which is expected to be adjusted earnings per share accretive in the first full year of ownership, is not subject to any financing conditions and is expected to close in the second half of 2024.