Honeywell to Offer to Acquire Novar for $2.4 Billion
Honeywell will pay 185 pence a share and assume about 300 million pounds of debt, chief executive David Cote said in a statement. Novar investors will retain a 6.6 pence dividend. Novar had faced a hostile takeover from Melrose, a smaller rival based in London. Novar executives had rejected the Melrose offer and had sought another buyer.
For Honeywell, based in Morristown, NJ, buying Novar will expand an automation and controls unit that contributes one third of sales and profit. "This acquisition is an excellent opportunity to further expand our Automation and Control Solutions business," said David M. Cote, Honeywell Chairman and CEO.