Honeywell Aerospace announced June 9 that it signed a definitive agreement to sell its Consumables Solutions business to B/E Aerospace for $1.05 billion, consisting of at least $800 million in cash and the remainder in shares of B/E common stock. The transaction is expected to close in the third quarter subject to regulatory approval.
Consumables Solutions is a global distributor of aerospace fasteners and hardware, and provides custom logistics services to original equipment manufacturers, airlines, repair shops, flight service centers and distributors. The business generated 2007 revenues of $524 million.
"While Consumables Solutions is a growing business, it no longer fits with Honeywell Aerospace's strategic focus on more advanced technologies for the entire aircraft," said Rob Gillette, Honeywell Aerospace president and chief executive officer. "B/E Aerospace's focus on the distribution of commodities makes this business a better place for Consumables Solutions' growth over the long-term. We look forward to working with B/E Aerospace under long-term supply and license agreements."
Honeywell International is a $37 billion diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Based in Morris Township, N.J., Honeywell's shares are traded on the New York, London and Chicago Stock Exchanges.
Based in Phoenix, Honeywell's $12 billion aerospace business is a leading global provider of integrated avionics, engines, systems and service solutions for aircraft manufacturers, airlines, business and general aviation, military, space and airport operations.