Introduction: On April 25, 2013, Honeywell announced it would sign a definitive agreement to acquire the American company Huarui Scientific…
April 23, 2013 -- Honeywell (NYSE: HON) announced it will sign a definitive agreement to acquire U.S. Venus Scientific Instruments (hereafter referred to as "Howry Instruments") for $340 million. Huarui Instruments is a privately held company and a manufacturer of stationary and portable gases, radiation detection systems, and related software. The $340 million acquisition price is approximately 13 times Warray Instruments' estimated 2013 EBITDA, or 6 times the adjusted earnings after optimizing the Honeywell Gas product portfolio. The agreement follows scheduled closing conditions, including regulatory review, is expected to close in the second quarter of 2013, and will not change Honeywell's full-year 2013 earnings forecast.
Huarui Scientific Instruments provides a complete range of personal, handheld, mobile, and stationary gas, radiation and photoionization sensing and monitoring devices for government, oil and gas, industrial, and emergency response industries, widely used in personal and factory safety and compliance. In 2012, it achieved approximately $107 million in sales. Many leading global companies and government agencies in more than 120 countries, as well as numerous city and state agencies in the United States, use Huarui Instruments' products.
Mark Levy, President and CEO of Honeywell's Life Safety Division, stated: "Howray Scientific Instruments USA possesses unparalleled technology and is a pioneer in the gas detection industry. Their strengths in hazardous materials, emergency response equipment, and close relationships with government agencies complement our existing business well. Their specialized technologies in photoionization detection, wireless and radiation detection have provided us with tremendous business opportunities. Huarui Instruments' geographic presence, manufacturing, and distribution layout—especially in high-growth countries like China—will further drive the development of our already robust gas detection business, making it a globally influential business within this advantageous industry. Huarui Instruments aligns closely with Honeywell's development strategies. ”
Huarui Scientific Instruments Company was established in 1991 and is located in San Jose, California, with approximately 750 employees. The company will be integrated into Honeywell's detector division; The Detector Division is part of Honeywell's Life Safety Division under Automation Control Systems Group (ACS).
Previously, Honeywell's Life Safety Division had successfully acquired several companies, including Zellweger Analytics in 2005, First Technology in 2006, Sperian's gas detection business in 2010, and Fire Sentry in 2012. The gas detection product portfolio of Honeywell Life Safety Division encompasses technologies that meet various gas detection requirements, including industrial fire protection and gas systems, portable gas detection, flame and centralized gas supply monitoring systems, as well as systems suitable for commercial building environments. Honeywell has now integrated nearly 200 years of expertise in gas detection design, manufacturing, and technology.
Article link: China Instrument Network http://www.ybzhan.cn/news/Detail/36618.html
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