Honeywell agrees to buy Novar PLC to expand its building security and fire systems business
December 23, 2004
NEW YORK - Honeywell has offered roughly GBP 900 million ($1.7 billion) to buy British holding company Novar PLC - a deal aimed at grabbing hold of NovarÃ¢â‚¬â„¢s Intelligent Business Systems unit.
The unit, which provides security, fire protection and building controls, contributed just under one third of NovarÃ¢â‚¬â„¢s sales in 2003. Novar also holds businesses in the aluminum and security printing services, which Honeywell does not plan to hold onto after the sale is finalized.
The buy also helps lift Honeywell up from its low 2005 earnings forecast. The company set earnings per share of $1.90 to $2.00 - lower than expectations, but said the Novar acquisition could add to profits for the next year.
Last month, Novar rejected aÃ‚Â $1.2 billion bid from Melrose, an U.K.-based investment firm, citing it as too low.