Honeywell To Buy Novar

Dec. 17, 2004
Honeywell International Inc., Morris Township, N.J., has agreed to buy the British industrial holding company Novar plc for about $1.7 billion.

Honeywell International Inc., Morris Township, N.J., has agreed to buy the British industrial holding company Novar plc for about $1.7 billion.

Novar plc, with reported 2003 revenue of $2.7 billion, is an international group whose core divisions are Intelligent Building Systems (IBS), Indalex Aluminum Solutions, and Security Printing Services. Novar’s IBS unit will enhance Honeywell’s offering of security, fire and building controls products and services, particularly in the United Kingdom and Germany, and support its strategy of global growth of these businesses. Honeywell 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 practical.

“This acquisition is an excellent opportunity to further expand our Automation and Control Solutions business,” said David M. Cote, Honeywell chairman and CEO. “Honeywell has a long heritage in providing premier integrated security, fire and building controls products and services. We see great opportunities in this business, and the integration of Novar’s highly complementary products, services and expertise clearly enhance those prospects.”

Honeywell intends to integrate Novar’s IBS unit, which had 2003 revenue of $1.2 billion into its Automation and Control Solutions (ACS) division. Novar IBS is a global business supplying electrical, electronic and control products and services to building operators, contractors and developers worldwide.

Honeywell ACS is an approximately $8 billion business with more than 40,000 employees worldwide. Honeywell expects that Novar’s IBS assets, its technology, business presence, customers and employees will contribute to the growth of its ACS division going forward.

Honeywell said the Novar board has agreed to the terms of its offer and will recommend it to Novar shareholders.