Honeywell to acquire EMS Technologies


Honeywell announced it signed a definitive agreement to
acquire EMS Technologies for $491 million.



The purchase price translates to approximately 13 times
EMS’s 2010 earnings before interest, taxes, depreciation and amortization
(EBITDA), or approximately 9 times 2010 EBITDA excluding certain corporate



The acquisition will enhance Honeywell‘s existing capabilities in rugged mobile computing technologies and
satellite communications within its Automation and Control Solutions (ACS) and
Aerospace businesses.



EMS’s $181 million Global Resource Management (GRM) division provides
ruggedized mobile computing products and services for use in transportation,
logistics, and workforce management settings as well as secure satellite-based
asset tracking and messaging technology for search and rescue, warehousing, and
field force automation environments.



Through its $174 million Aviation division, EMS provides terminals,
antennas, in-cabin network devices, rugged data storage, and surveillance
applications predominantly for use on aircraft and in other data gathering



EMS is a terrific addition to Honeywell, adding leading
positions in attractive markets that are closely aligned with favorable trends
in the growing Command, Control, Communications, Computers, Intelligence,
Surveillance, and Reconnaissance (C4ISR) space and commercial aerospace, as
well as being highly complementary to our existing Scanning and Mobility
business. Honeywell is uniquely positioned to acquire EMS due to the strategic
fit across EMS’s Global Resource Management and Aviation divisions. 



“The acquisition brings engineering expertise,
differentiated technologies, global reach, and profitable adjacent segments
that build upon our great positions in good industries and enhance our growth
profile,” said Dave Cote, chairman and chief executive officer, Honeywell.



EMS’s GRM division offers a broad range of solutions for
supply chain logistics, mobile workforce management, and remote asset
monitoring applications, supported by hundreds of partners worldwide. EMS’s
proven mobile resource management solutions include LXE-branded rugged handheld
and vehicle-mounted computers featuring multiple radio technologies and
satellite-based global tracking and monitoring solutions for cargo, fleet
assets, and personnel.



“This is another terrific transaction for our
Scanning and Mobility business. EMS strengthens our core mobile computing
business and expands our addressable market with complementary new products,
channel partners, and entry into the warehousing and port segments that we
believe will be growth drivers for the business. This also represents an
opportunity to demonstrate our proven acquisition integration process,” said
Roger Fradin, president and chief executive officer, Honeywell automation and
control solutions.



EMS Aviation designs and manufactures satellite-based
broadband communication systems that enable worldwide high-speed Internet and
voice and video capabilities.  The Aviation division serves a broad base
of commercial and defense customers, delivering leading-edge antenna systems
and beam-management capabilities for mobile network-centric operations, radar
for battlefield visibility, and commercial aerospace connectivity.



“Combining EMS products into our Aerospace business
means that Honeywell can now deliver the next big leap in satcom technology, a
key growth area for aerospace. Our customers will greatly benefit from
these new products and solutions, enabling them to leverage the strong global
growth of high-speed wireless and satellite data services,” said Tim Mahoney,
president and chief executive officer, Honeywell Aerospace.



By Team