Summary
Honeywell International Inc. (HON) announced on December 13, 2004, a significant development: it has reached an agreement with the board of Novar plc for recommended offers to acquire Novar's entire ordinary and preference share capital. The proposed transaction values Novar at approximately £1.2 billion (US$2.4 billion) on a fully diluted basis, plus the assumption of about £300 million (US$580 million) in debt, totaling a substantial £1.5 billion (US$2.98 billion) enterprise value. This acquisition, which Novar's board intends to unanimously recommend, is expected to be funded by Honeywell's existing cash resources, supplemented by a commitment for an interim facility of up to £1.2 billion from JPMorgan Chase Bank. Investors should note that these offers will not be made in the United States or to U.S. persons, and Honeywell does not intend to register its securities in the U.S. for this transaction. This move signals Honeywell's strategic intent to expand its operations through a significant international acquisition.
Key Highlights
- 1Honeywell has agreed to make recommended offers to acquire Novar plc for approximately £1.2 billion (US$2.4 billion) on a fully diluted basis.
- 2The total enterprise value of the transaction, including the assumption of approximately £300 million (US$580 million) in Novar debt, is around £1.5 billion (US$2.98 billion).
- 3Novar's board of directors has unanimously resolved to recommend the offers to its shareholders.
- 4The acquisition is expected to be financed through Honeywell's existing cash reserves.
- 5A commitment letter for an interim financing facility of up to £1.2 billion has been secured from JPMorgan Chase Bank, N.A. and J.P. Morgan Securities Inc.
- 6The offers will not be extended to shareholders in the United States or to U.S. persons, and Honeywell does not intend to register securities in the U.S. for this transaction.