Honeywell has made an offer of $1.2 billion to acquire UK-nased Novar, a month after the company had rejected an offer from Melrose.
Honeywell expects to fund the acquisition with existing cash resources and credit facilities. The acquisition is expected to have an accretive impact on Honeywell’s 2005 earnings per share.
Novar, with reported 2003 revenue of £1.43 billion (US$2.7 billion) is an international group whose core divisions are Intelligent Building Systems (IBS), Indalex Aluminum Solutions, and Security Printing Services.
In a statement, Honeywell said that it does not intend to hold Indalex Aluminum Solutions and Security Printing Services in the long-term and expects to pursue ‘strategic alternatives’ for these units as soon as it is practical.
Honeywell intends to integrate Novar’s IBS unit, which had 2003 revenue of GBP 603.9 million ($1.2 billion) into its Automation and Control Solutions (ACS) division. Honeywell ACS is an approximately $8.0 billion business with more than 40,000 employees worldwide.
Honeywell expects to complete the acquisition in the first quarter of 2005.