Honeywell Takes Flight In Autonomous Future With Civitanavi Acquisition

Honeywell International Inc HON disclosed the intention to acquire all outstanding shares of Civitanavi Systems S.p.A.

Civitanavi provides position navigation and timing technology for the aerospace, defense, and industrial markets. 

The company will initiate a voluntary tender offer of €6.30 per share in cash (an equity value of approximately €200 million at closing).

The purchase price represents a premium of about 27.1% to the 30-day volume-weighted average trading price of Civitanavi’s stock, which ended on March 26, 2024, the last day of trading before the transaction’s announcement. 

The transaction is expected to close in the third quarter of 2024, subject to customary closing conditions, and is not subject to any financing condition.

Honeywell has already secured the commitment of Civitanavi’s controlling shareholder, who owns approximately 66% of the outstanding shares.

The acquisition will further boost Honeywell’s capabilities to help its customers create autonomous operations in aircraft and other vehicles. 

The deal also supports Honeywell’s alignment of its portfolio, including the future of aviation and automation. 

Jim Currier, Honeywell Aerospace Technologies President & CEO, said, “With this acquisition, we will be able to immediately expand our offerings to customers in the European Union through Civitanavi’s navigation solutions, a capability we intend to further build out in the near-term.”

Honeywell held cash and equivalents of ~$8 billion as of December 31, 2023.

Investors can gain exposure to the stock via Gabelli Commercial Aerospace And Defense ETF GCAD and Invesco Aerospace & Defense ETF PPA.

Price Action: HON shares closed higher by 1.27% at $201.00 on Tuesday.

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