Honeywell to purchase Arlington-based CAES for $1.9B

Honeywell, a multinational conglomerate based in Charlotte, North Carolina, announced Thursday it plans to buy Arlington-based aerospace and defense technology company CAES for $1.9 billion in cash from private equity firm Advent International.

Formerly known as Cobham Advanced Electronic Solutions, CAES was founded in 1934 and was acquired by Advent in 2020. According to Honeywell’s announcement, the acquisition will enhance Honeywell’s defense tech portfolio, including new electromagnetic defense tools for end-to-end radio frequency signal management. “The combined company will grow Honeywell’s established production and upgrade positions on critical platforms that include F-35, EA-18G, AMRAAM and GMLRS, while also introducing offerings on new platforms like Navy Radar and UAS and C-UAS technologies,” the statement said.

The Wall Street Journal reported the deal Thursday morning, noting that it comes when military spending has ramped up amid long-standing conflicts including Russia’s invasion of Ukraine and the Israel-Hamas conflict in Gaza.

The purchase is set to close in the second half of 2024 and will add approximately 2,200 employees, the news release said. According to Honeywell, $1.9 billion represents approximately 14 times CAES’ estimated EBITDA in 2024.

“As a trusted supplier and mission partner to our customers across advanced [radio frequency] capabilities, I couldn’t be more excited to see CAES join the Honeywell team and work together to build on the outstanding expertise of both companies,” Mike Kahn, CAES’ president and CEO, said in a statement. “Our extraordinary talent, RF breadth and world-class manufacturing facilities will offer new opportunities and further drive innovation for our industry.”