Honeywell Swoops In To Acquire CAES For $1.9B, Boosts Defense Business
Portfolio Pulse from Lekha Gupta
Honeywell International Inc. (NASDAQ: HON) announced an agreement to acquire CAES Systems Holdings LLC for $1.9 billion in an all-cash transaction. The acquisition is expected to boost Honeywell's defense business and adjusted earnings per share in the first full year of ownership. The deal is anticipated to close in the second half of 2024, pending customary closing conditions and regulatory approvals. Honeywell's stock is down 0.23% premarket following the announcement.
June 20, 2024 | 1:22 pm
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POSITIVE IMPACT
Honeywell's recent acquisition of Carrier Global Corporation's Global Access Solutions business has led to an increase in its second-quarter and FY24 guidance.
Carrier Global's business acquisition by Honeywell has positively influenced Honeywell's financial outlook, indirectly benefiting Carrier Global by association.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Honeywell's stock through the Gabelli Commercial Aerospace And Defense ETF (GCAD), which may benefit from Honeywell's acquisition of CAES.
The ETF holds Honeywell shares, and the acquisition of CAES is likely to positively impact the ETF's performance due to Honeywell's enhanced defense business.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30
POSITIVE IMPACT
Honeywell's acquisition of CAES for $1.9 billion is expected to enhance its defense business and boost adjusted earnings per share in the first full year of ownership. The deal is anticipated to close in the second half of 2024.
The acquisition is strategically significant for Honeywell, enhancing its defense capabilities and expected to positively impact earnings. The market has reacted slightly negatively premarket, but the long-term outlook is positive.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Honeywell's stock through the Invesco Aerospace & Defense ETF (PPA), which may benefit from Honeywell's acquisition of CAES.
The ETF holds Honeywell shares, and the acquisition of CAES is likely to positively impact the ETF's performance due to Honeywell's enhanced defense business.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 30