The board of First Technology unanimously recommends the all-cash deal.Honeywell (NYSE: HON) has reached an agreement with the board of First Technology on a $555 million all-cash offer for the U.K. gas detection and automotive products company. First TechnologyÂ¹s board has unanimously recommended the deal to its stockholders.
Based in Egham, U.K., First Technology makes a wide range of gas sensing equipment for use in the mining, power generation and water treatment industries. It also makes sensors, switches and control devices used in automotive safety systems.
First Technology reported sales of $288.1 million in 2005 with 51% of its revenues coming from its gas sensing business. “The First Technology acquisition further positions Honeywell as a global leader in the high-growth hazardous gas detection industry,” said Dave Cote, chairman and CEO of Morris Township-based Honeywell.
Honeywell, a $26 billion technology and manufacturing company, plans to integrate First Technology”s gas sensing business into its Automation and Control Solutions (ACS) business, and assess the strategic fit between ACS and the U.K. company”s automotive and special products, and safety and analysis businesses. The deal is subject to both U.S. and U.K. regulatory review, but Honeywell said it expects to close in the first half of 2006.
The offered price breaks down to 275 pence for each of London-listed First TechnologyÂ¹s ordinary shares. The price also includes the assumption of $189 million of debt by Honeywell. The Dow componentÂs stock slipped $0.11 to $37.77 in early afternoon trading.