Honeywell (NYSE: HON ) today announced that it has reached a definitive agreement to sell Honeywell Technology Solutions Inc. (HTSI), a leading global provider of professional space, security, logistics and manpower services in the Government Services market, to KBR Inc. (NYSE: KBR ) for approximately $300 million . The transaction, which is subject to customary closing conditions and required regulatory approvals, is expected to close in 2016.
HTSI is a wholly owned subsidiary of Honeywell Aerospace, with approximately 3,550 employees operating throughout 39 states and in 14 countries around the world. The company's customers primarily consist of U.S. government agencies, including the Department of Defense and its Navy, Air Force, Army and Marine Corps branches. Annual estimated revenues for HTSI are approximately $600 million . KBR is a U.S.-based global technology, engineering, procurement and construction company that primarily serves the government services and other industries.
"Honeywell continues to evaluate its portfolio while focusing on driving breakthrough growth through advanced software capabilities and technology differentiation," said Honeywell Chairman and CEO Dave Cote . "As part of this process, we determined that HTSI did not align to our current portfolio and long-term strategic plans in Aerospace. HTSI is a good business with a long heritage in the government services industry, and is well positioned to continue this success as part of KBR."
There is no impact to Honeywell's financial guidance.
Source: Honeywell International, Inc. (NYSE: HON)
Date: Aug 12, 2016