AlliedSignal swallows Honeywell for $14bn
Tuesday 08 June 1999
The combined company, which will be called Honeywell but will based at the current AlliedSignal headquarters in New Jersey, will be among the 50 largest industrial conglomerates on the globe, with combined annual sales of $25bn and a stock market capitalisation of $45bn.
The friendly takeover was engineered by AlliedSignal's widely revered chairman and chief executive, Lawrence Bossidy, and is meant to protect the company from the ups and downs of business, especially in the aerospace sector.
"We will be a more diversified company," Mr Bossidy said yesterday, "which ought to help us deal with the cycles."
Mr Bossidy is set to retire next year, and the helm of the new company will then be passed to the current chief executive of Honeywell, Michael Bonsignore.
There will be some pain associated with the takeover - about 4,500 jobs will be shaved, many of them at Honeywell's current headquarters in Minneapolis.
The combination's impact will be felt extensively in the aerospace industry, in which both companies have long been important players.
In addition to being a market leader in electronic control systems - including thermostats - Honeywell is a manufacturer of avionics technology such as cockpit controls and global positioning equipment.
AlliedSignal's products include aircraft engines and collision avoidance systems. The aerospace unit of the new company will generate about $10bn in annual sales.
Both companies admitted that the issues of name and headquarters were among the most difficult to be settled in talks that began earlier this year.
On the decision to go with the Honeywell name and to jettison AlliedSignal, Mr Bossidy said: "They have a better worldwide brand than we did, so we made a concession on that point."
The deal is a triumph for Mr Bossidy, who was thwarted in his attempts last year to mount a hostile takeover of AMP, a maker of electronic connectors.
Two months ago, at the AlliedSignal's annual meeting, Mr Bossidy had hinted that his appetite for a takeover was undiminished. "I want to do something big in this company before I leave," he said.
- 1 James Foley 'beheaded': Isis video shows militant with British accent 'execute US journalist' – and warns Obama of more to come
- 2 ALS ice bucket challenge co-founder Corey Griffin drowns aged 27
- 3 Cilla Black defends Cliff Richard: 'I am positive that the allegations are without foundation'
- 4 Nicki Minaj finally releases predictable 'Anaconda' video
- 5 James Foley 'beheading': Met police warn public watching murder video could be criminal offence
Scottish independence: English people overwhelmingly want Scotland to stay in the UK
Isis threat: Cameron wants an alliance with Iran
Crisis? What crisis? A visiting US doctor gives the NHS a rave review
Michael Brown shooting: Chaos erupts on the streets of Ferguson after autopsy shows teenager was shot six times – twice in the head
Richard Dawkins on babies with Down Syndrome: 'Abort it and try again. It would be immoral to bring it into the world'
Scottish Independence Referendum: Salmond described as 'arrogant, ambitious and dishonest' by Scottish women
iJobs Money & Business
£45000 per annum: Harrington Starr: Quantitative Analyst (Financial Services, ...
Negotiable: Harrington Starr: Application Support Engineer (C++, .NET, VB, Per...
£450 - £600 per day: Harrington Starr: AIFMD Business Analyst / Consultant - I...
£450 - £600 per day: Harrington Starr: Business Analyst Solvency II SME (Pilla...