CHICAGO – Honeywell International Inc. (HON) on Wednesday said it has agreed to sell the crash test dummies unit of newly acquired First Technology Plc for $87.3 million.
The sale of the First Technology business to HgCapital, a European sector-focused private equity investor, is expected to close during the first half of the year.
Honeywell, the U.S. industrial and aerospace conglomerate, completed its $508 million acquisition of First Technology on March 24. Its other two businesses are gas sensing, and automotive and special products.
"The underlying rationale of our acquisition of First Technology is to build on our leadership position in the high-growth hazardous gas detection industry," Honeywell Chief Executive Dave Cote said in a statement. The crash test dummies unit "does not represent a good strategic fit with the Honeywell portfolio," he added.
Honeywell said it would integrate First Technology's gas sensing business into its own automation and control solutions operations, strengthening its presence in the fast-growing gas detection industry.
It is still assessing the strategic fit of First Technology's automotive and special products business, which designs, develops and makes automotive sensors, electronic modules and control devices.
The crash test dummies unit -- First Technology Safety & Analysis business -- had sales of $48.1 million for its fiscal year ended April 30, 2005, said Morris Township, New Jersey-based Honeywell. It employs about 250 people, according to First Technology's Web site.