American defense giant Honeywell has announced plans to acquire CAES Systems Holdings for $1.9 billion.
The deal will transfer CAES’ ownership from private equity firm Advent International, which acquired the electronic warfare (EW) specialist in 2020 for $5 billion.
According to the North Carolina-based company, the acquisition will further position it at the forefront of the defense industry’s most dynamic sectors and help set the tempo for its continued growth in aerospace.
“The combination of our talented teams will diversify and deepen our expertise and specialized capabilities that enable us to scale current offerings and innovate new ones across critical military platforms,” Honeywell Aerospace CEO Jim Currier said.
The deal is expected to close in the second half of 2024.
The CAES Portfolio
Headquartered in Virginia, CAES specializes in antennas, radio frequency (RF), and sensing technologies that are vital for various EW systems, missiles, and radars.
It has an existing contract with the US Army to supply a precision strike sensor core for its Long-Range Precision Fires capability.
The company also served the US Navy, delivering EW upgrades for its surface combatants last year.
The billion-dollar acquisition is expected to complement Honeywell’s offerings on existing aerospace programs, such as Lockheed Martin’s F-35, Boeing’s EA-18G, and Raytheon’s Advanced Medium-Range Air-to-Air Missile (AMRAAM).
“With the integration of CAES’ solutions and capabilities, we will fortify our existing defense offerings, while also expanding our capabilities in pivotal areas like RF, radar, and sensing technologies to ensure a market-leading position in areas that are critical for global security,” company chairman Vimal Kapur stated.
CAES has a total of 13 facilities in North America and approximately 2,200 employees, including RF engineering experts.
