The International Herald Tribune : "Honeywell International will buy Novar, a British industrial conglomerate, for £798 million to expand in building products like security, fire and ventilation systems, the companies said Monday. Honeywell, a technology and manufacturing company based in New Jersey, will pay 185 pence a share, or about $1.53 billion in total, marking a 28 percent premium to a hostile offer in cash and shares from Melrose, an investment company. The bid also offers a second interim dividend of 6.6 pence a share in place of a final dividend for the year.
Last month, Novar, previously known as Caradon and before that as Metal Box, rejected Melrose's £625 million bid, saying it undervalued the group. Melrose later said the value of its bid increased to £742.6 million after the value of its own shares rose. Melrose will study details of Honeywell's bid before deciding what to do next, Nick Miles, a spokesman, said.
The purchase would allow Honeywell to expand its automation and control systems business, which last year had a profit of $843 million on sales of $7.46 billion. That business, Honeywell's second-biggest after aerospace, also makes thermostats, humidifiers and factory equipment.
Honeywell said that it would integrate the Novar building systems unit with its automation and controls business, which has revenue of about $8 billion and 40,000 employees. Honeywell does not plan to keep Novar's check printing and aluminum extrusions units, which it said might be worth $1.5 billion.
The acquisition would be Cote's biggest since he joined Honeywell in February 2002. He has concentrated more on closing plants and eliminating jobs as aircraft parts sales slumped, with the decline in air traffic after the attacks of Sept. 11, 2001. "
Tuesday, December 14, 2004
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