Diversified technology company
Honeywell International Inc.
) recently augmented its gas detection portfolio with the closure
of the acquisition of RAE Systems Inc., a global manufacturer of
fixed and portable gas and radiation detection systems, for $340
million. Post-acquisition, RAE will form an integral part of
Honeywell Analytics, which is a division of Honeywell Life Safety
(HLS) within Honeywell Automation and Control Solutions (ACS).
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Headquartered in San Jose, CA, RAE offers rapidly deployable
intelligent gas and radiation detection systems to facilitate
real-time safety and security threat detection for various U.S.
and non-U.S. government agencies as well as several city and
state entities across the country. Its product portfolio includes
a full line of wireless enabled solutions such as personal,
hand-held, transportable, and fixed instruments for a wide range
of personal and plant safety and regulation compliance
With the merger, RAE aims to leverage Honeywell's expertise and
financial capabilities to strengthen its continued efforts to
develop and manufacture leading chemical, gas and radiation
detection solutions and services for worldwide customers. The
strategic decision further reflects its sustained focus on
industrial and responder safety and is expected to fuel growth by
redirecting capital to expand its research and development
On the other hand, the acquisition has enabled Honeywell to offer
a compelling value proposition to its customers with a
comprehensive product portfolio, addressing all possible gas
detection requirements in the industry. These include industrial
fire and gas systems, portable gas detection, flame and
centralized gas monitoring systems and systems used in commercial
building environments. The transaction, therefore, is a win-win
deal for both the participating companies.
Based in Morris Township, NJ, Honeywell manufactures a wide range
of aerospace products and services, including 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 and business.
Honeywell operates its business through four operating segments -
Aerospace, Automation and Control Solutions, Performance
Materials and Technologies, and Transportation Systems.
Honeywell's diversified business portfolio mitigates operating
risks and has the potential to earn consistent above-average
Honeywell currently has a Zacks Rank #3 (Hold). Other companies
in the industry worth mentioning include
Compass Diversified Holdings
), both carrying a Zacks Rank #2 (Buy), and
China Merchants Holdings (International) Company
), which retains a Zacks Rank #1 (Strong Buy).