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 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Kate Moss: Previously unpublished nude photo revealed by Mert and Marcus
- 3 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 4 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 5 Bad Jews poster 'censored' on London Tube
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Becky Watts: Four appear in court charged with hiding body parts after teenager's death
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
Professor Brian Cox brands astrology-believing Tory MP David Tredinnick an 'outlier on the spectrum of reason'
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...