Honeywell discloses acquisition of EMS Technologies

Honeywell has signed a definitive agreement to acquire EMS Technologies, Inc. in an effort to enhance its existing connectivity capabilities within its Automation and Control Solutions (ACS) and aerospace businesses.The agreement is thought to be $33 per share in cash or an aggregate purchase price of approximately $491 million, net of cash acquired. A subsidiary of Honeywell is to commence a tender offer within 10 business days to purchase all outstanding shares of EMS.Through its aviation division, EMS designs and manufactures satellite-based broadband communication systems that enable worldwide high-speed internet and voice and video capabilities. The aviation division serves a broad base of commercial and defence customers, delivering leading-edge antenna systems and beam-management capabilities for mobile network-centric operations, radar for battlefield visibility, and commercial aerospace connectivity.Chairman and Chief Executive Officer of Honeywell, Dave Cote stated, "Honeywell is uniquely positioned to acquire EMS due to the strategic fit across EMS’s Global Resource Management and Aviation divisions. The acquisition brings engineering expertise, differentiated technologies, global reach, and profitable adjacent segments that build upon our great positions in good industries and enhance our growth profile.""Combining EMS products into our aerospace business means that Honeywell can now deliver the next big leap in satcom technology, a key growth area for aerospace," added Honeywell Aerospace President and Chief Executive Officer Tim Mahoney. "Our customers will greatly benefit from these new products and solutions, enabling them to leverage the strong global growth of high-speed wireless and satellite data services."Honeywellclaim thatall directors and officers of EMS intend to tender all of their respective shares in the offer. The offer will be subject to the tender of a majorityof EMS’s shares and customary closing conditions, including regulatory approvals. The transaction is expected to close in the third quarter of 2011.

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