Parties agree on payment terms for CCTV business
LEWISVILLE, Texas - A disagreement over HoneywellÃ¢â‚¬â„¢s final payment for buying American Building ControlÃ¢â‚¬â„¢s CCTV business for $36 million has been ironed out.
Honeywell has agreed to pay $3.6 million of what it owes, plus interest and an $888,211 adjustment. Another payment of $1.8 million is due in May 2004. In the meantime, the money is being retained for any claims that may come against the company. All told, the total bill now equals $6.5 million.
As part of its purchase agreement for buying UltrakÃ¢â‚¬â„¢s CCTV business, Honeywell held back $5.4 million, payable in three installments, less purchase price adjustments or claims. But in May of 2003, when it came time for Honeywell to begin the first of its three payments of $1.8 million, the company did not pay up.
Company officials at Honeywell challenged American Building ControlÃ¢â‚¬â„¢s proposed upward adjustment of the closing balance. The two companies then entered into arbitration to resolve the financial matter and came to an agreement late last year on terms and the amount due.