April 23, 2013 – Honeywell (NYSE: HON) announced that it will sign a definitive agreement to acquire Huarui Scientific Instruments, Inc. ("Huarui Instruments") for $340 million. Huarui Instruments is a privately held company and a manufacturer of fixed and radiation detection systems and related software. The $340 million purchase price represents approximately 13 times Huarui Instruments' estimated 2013 earnings (EBITDA, before interest, taxes, depreciation and amortization), or 6 times adjusted earnings after optimization of Honeywell's gas portfolio. The agreement is subject to prescribed closing conditions, including regulatory reviews, and is expected to close in the second quarter of 2013 without changing Honeywell's full-year 2013 earnings estimates.
Huarui Inc. provides a complete range of personal, handheld, mobile and fixed gas, radiation and photoionization sensing and monitoring equipment for the government, oil and gas, industrial and emergency response industries, widely used in personal and factory safety and compliance, and achieved sales of approximately $107 million in 2012. Many of the world's leading companies and government agencies in more than 120 countries around the world, as well as city and state government agencies in the United States, use Huarui Instruments' products.
Mark Levy, President and CEO of Honeywell's Life Safety Business Unit, said, "Huarui Scientific Instruments is a pioneer in the gas detection industry with unmatched technology. Their expertise in hazardous materials, emergency response equipment, and close dealings with government agencies complement our existing business. Their expertise in photoionization, wireless and radiation detection provides us with great opportunities for expansion. Huarui Instruments' geographical distribution, manufacturing and distribution layout, especially in high-growth countries like China, will further promote the development of our already strong gas detection business and develop into a more globally influential business in this advantageous industry." Huarui Instruments is very consistent with Honeywell's development strategy. ”
Founded in 1991, Huarui Scientific Instruments is located in San Jose, California, USA, and has approximately 750 employees. The Company will be integrated into the Honeywelldetector division; The Detector segment is part of the Honeywell Life Safety Business Unit, part of Honeywell Automation Control Systems Group (ACS).
Previously, Honeywell Life Safety had successfully acquired a number of companies, including the acquisition of Zellweger Analytics in 2005, First Technology in 2006, Sperian's gas detection business in 2010, and FireSentry in 2012. Honeywell's Life Safety portfolio includes technologies to meet a wide range of gas detection requirements, including industrial fire and gas systems, portable gas detection, flame and centralized gas monitoring systems, and systems for commercial building environments. Honeywell has now combined nearly 200 years of gas detection design, manufacturing, and technical expertise.