Honeywell to Buy Sperian Protection – Analyst Blog

Honeywell International Inc. (HON) intends to acquire Sperian Protection, a leader in personal protection equipment (PPE) design and manufacturing, for approximately €117 per share, which represents a premium of 93.0% over the price as on March 30. The aggregate transaction value inclusive of net debt is roughly $1.4 billion. The company expects the completion of the acquisition in the third quarter of 2010, pending regulatory approvals.

 

Honeywell will acquire all of Sperian’s issued and outstanding shares through an all-cash tender offer and stock purchase agreement with Essilor and Mrs. Ginette Dalloz, two major shareholders of Sperian, holding roughly 28.2% of share capital. Acquired via Honeywell’s indirect, wholly owned subsidiary, Honeywell Holding France SAS, Sperian will be integrated with Honeywell’s Automation and Control Solutions’ Life Safety business.

 

Upon completion, the acquisition is expected to expand Honeywell’s Safety Products business access to global distribution channels, provide synergies and enhance retail presence. End-users from the general industrial, construction, fire service and electrical safety segments will likely benefit significantly from the combined entity.

 

The opening of the offer is subject to approval of the French authorities on foreign investments and final recommendation of Sperian’s board of directors. The completion of the offer is subject to the receipt of anti-trust clearance from the EU and the US, and the successful tender offer of nearly 57% of diluted shares by the Sperian shareholders.

 

Honeywell is a diversified technology and manufacturing company, serving customers worldwide with aerospace products and services, control, sensing and security technologies for buildings, homes and industry, turbochargers, automotive products, specialty chemicals, electronic and advanced materials, process technology for refining and petrochemicals and energy efficient products and solutions for homes, business and transportation. Honeywell’s prime competitors include Goodrich Corp. (GR), Johnson Controls Inc. (JCI) and United Technologies Corp. (UTX).