Honeywell to Buy Norcross for $1.2 Billion
Diversified manufacturer Honeywell International said Friday that it would buy Norcross Safety Products, a maker of personal protective equipment, for about $1.2 billion to expand its safety business.
Norcross, which is majority-owned by Odyssey Investment Partners, makes respirators, helmets, protective gloves and shoes, and other protective gear for firefighters and industrial workers.
The company had 2007 revenue of about $609 million.
"This acquisition provides Honeywell with a complete platform in a fragmented, global segment which is expected to yield substantial growth opportunities," Roger Fradin, chief executive of Honeywell's automation and control solutions group, said in a statement.
Oak Brook, Illinois-based Norcross will become part of Fradin's unit, Honeywell's largest and fastest-growing operation.
The division, whose products range from home thermostats to systems that manage large industrial facilities, last year generated 36.1 percent of Honeywell's $34.6 billion in revenue.
The deal is subject to U.S. regulatory review, the Morris Township, New Jersey-based company said.
So far this year, Honeywell shares have fallen about 6 percent at a time when the Dow Jones U.S. diversified industrials index is about flat.