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Honeywell Acquires Transnorm, Completes Garrett Motion Spin-Off

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Oct. 2 2018, Updated 4:33 p.m. ET

Honeywell acquires Transnorm

On October 1, Honeywell (HON) announced in a press release that it had entered into an agreement to acquire Transnorm. For this acquisition, HON will pay 425 million euros to IK Investment Partners.

Transnorm has a significant presence in Europe. The acquisition will further strengthen its presence in the warehouse automation market.

The deal is expected to close in November and could be reflected in the company’s fourth-quarter earnings. Transnorm’s annual revenue is said to be ~100 million euros, and it’s poised to rise 30% in 2018. Honeywell plans to integrate Transnorm into its Safety and Productivity Solutions segment.

Transnorm is headquartered in Harsum, Germany. It has more than 500 employees, and it specializes in the production of curved conveyor systems that serve the transportation business. The company also manufactures movable conveyors used for loading parcels onto trucks and trailers.

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John Waldron, president and CEO of Honeywell Safety and Productivity Solutions, said, “Transnorm complements our portfolio of automated material handling equipment and supply chain software to enable us to deliver our vision of the connected distribution center to our customers. It also substantially enhances our presence in the European market.”

Honeywell completes spin-off

Honeywell also announced the completion of the spin-off of its transportation systems business, which is now called Garrett Motion. Shares of Garrett Motion were listed on the NYSE and traded normally on October 1. The stock will trade under the GTX ticker. GTX opened at $17.60 and closed at $18.39 on its first day of trading.

Investors can indirectly hold Honeywell by investing in the Invesco Aerospace & Defense ETF (PPA), which holds 7.1% in Honeywell. The fund also provides exposure to Lockheed Martin (LMT), Boeing (BA), and United Technologies (UTX) at weights of 7.2%, 7.1%, and 7.0%, respectively.

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