(Reuters) -Honeywell has agreed to buy aerospace and defense technology company CAES Systems for $1.9 billion from private equity firm Advent International, the company said on Thursday.
The all-cash deal marks Honeywell’s second acquisition in recent months to strengthen its aerospace technologies unit, amidst a realignment of its business to focus on megatrends such as automation, aviation and energy transition.
To bolster growth, the company has, in the past few years, doubled down on mergers and acquisitions to strengthen high-performing segments, while spinning off units that don’t align with its growth strategy.
Among them, aerospace in particular has lifted the company’s performance due to strong demand for parts from customers such as Boeing and Airbus, as travel demand booms.
CAES, formerly known as Cobham Advanced Electronic Solutions, designs, develops and tests electronics such as antenna systems and communication networks for aerospace and defense companies.
The Wall Street Journal first reported the deal on Thursday.
(Reporting by Ananta Agarwal in Bengaluru; Editing by Janane Venkatraman)
