Summary
Honeywell International Inc. announced on April 3, 2008, its entry into a definitive Stock Purchase Agreement to acquire Safety Products Holdings, Inc. for approximately $1.2 billion in cash. This acquisition, subject to regulatory approval, is expected to close in the second quarter of 2008. Safety Products is a significant player in the personal protection equipment market, with approximately $609 million in sales for the fiscal year ended December 31, 2007, serving industries such as general safety, fire service, and electrical safety. This strategic move signifies Honeywell's intent to expand its presence in the safety products sector. Investors should monitor the regulatory review process and the integration of Safety Products into Honeywell's existing business segments. The purchase price is subject to adjustments based on Safety Products' net indebtedness and transaction-related fees and expenses.
Key Highlights
- 1Honeywell to acquire Safety Products Holdings, Inc. for approximately $1.2 billion cash.
- 2Acquisition is subject to regulatory review and expected to close in Q2 2008.
- 3Safety Products is a leading designer, manufacturer, and marketer of personal protection equipment.
- 4Safety Products reported approximately $609 million in sales for FY 2007.
- 5The transaction will expand Honeywell's footprint in the safety and preparedness, fire service, and electrical safety industries.
- 6The final purchase price will be adjusted for Safety Products' net indebtedness and associated costs.