Honeywell sells IAS for $425 million

has reached an agreement to sell Indalex Aluminum Solutions (IAS) to an affiliate of private investment firm

for $425 million in cash, plus the assumption of pension and other liabilities.

The transaction, which is subject to regulatory review, is expected to close in the fourth quarter of 2005.

“IAS is the second largest aluminium extruder in North America,” said Dave Cote, Honeywell Chairman and CEO. “While it’s a good business, it does not fit with our portfolio. The timing, strategy and value of the transaction are in line with our previously stated expectations. We are pleased to be moving forward as planned with the first of the non-core Novar divestitures.”

IAS was part of Novar, which Honeywell acquired earlier this year. Novar’s three businesses included IAS, Intelligent Building Systems (IBS), and Security Printing Services (SPS).

At the time of the acquisition, Honeywell announced that it would divest IAS and SPS within a year. Honeywell is successfully integrating the IBS business into its Automation and Control Solutions (ACS) business and is continuing the process to divest SPS.