Honeywell Trying to Sell Off Security Business

Author: Brian Karas, Published on Feb 25, 2016

The last several months have seen M&A activity in the security industry really picking up. Now Honeywell is getting in on the action by putting it's Building Solutions Business on the market. Contained within Building Solutions is a portion of Honeywell's security business.

Will Honeywell be able to join the multi-billion dollar M&A club, along with Tyco / JCI and ADT / Protection 1?

In this note, we break down Honeywell's financials, examine where the security business fits (or does not) and show what this means to the security industry.

*** **** ******* ****** **** **** *&* ******** ** *** security ******** ****** ******* **. *** ********* ** ******* ** on *** ****** ** ******* **'* ******** ********* ******** ** the ******. ********* ****** ******** ********* ** * ******* ** Honeywell's ******** ********.

**** ********* ** **** ** **** *** *****-******* ****** *&* club, ***** **** **** / *** *** *** / ********** 1?

** **** ****, ** ***** **** *********'* **********, ******* ***** the ******** ******** **** (** **** ***) *** **** **** this ***** ** *** ******** ********.

[***************]

WSJ ******* / ******* *******

*** *** *********** **** ********* ****. ** **********, **** **** $*.* ******* ******* *** **** segment ** ********* *** * ********* ***** ***** ** $* to $* *******.

*** ********* ******** *** ******* ** *** *** ******:

  • **** **** ** *********'* ******** ********** *** ***** **** ** Honeywell ****** *** ******** ********* **** * ******* ********: ******, Safety *** ******** **** ******** ********* & ************. *** *** names *** ****** (***) *** **** ** ******** ***** ** the ****** *******. ** ****, ** ** ******* ** *** of *** ******** ********* ***** ** **** ******** ** ** some ***** ****** ****** *********.
  • *** ***** ********* ***** ** ***** *** ******** ** *** revenue ********* (** **** **** *** ***** ****** *****) *****, if *******, ******* **** *** ********** ***** **** *** ***** likely ** *** ****** *** *** *******.

Financial ********

******** ******** *** ******** *** * ******** ***** ****** *** overall ********* ********, ************ **% ** **** ** ~$** ******* annual *****. *** ******* ******** ** ********* ($**.**), *** ******* $10 ******* *** *** *** *********** ********* *** ************ *******. Security ***** ** *** ***** ******* ** ********** / *******.

*** ***** ***** ****** **** ****:

Security ******* ****** *** *** ***

*********'* *** ******** **** **** ** ******** ***:

  • ****** ****** *** ********, ***** ** **** **** ******** ****** know ********* *** ******* **** ** ********, ****** **** ** ADI, *** ********* **** ** ** *** ********* **** ****-******** onto *** ********.
  • ******** ********* *** ************ ***** ******** ********* *** ********* / integrator ******** *********** ******** *********. **** **** ** **** ******* "************" **** *** ******** refer ** ***-***** ***** *******, *** ** *** **********, ******** and ***-******** ******* **** ********** ********* ********** * ***** ********.

The ******** ********* *** ************ ****

*** *** **** ** ********** ******* ** $*.* ******* *** compared ** ******* ***** ********* ******** ***-*****, *** *** *********** of ****$*-****** ***** ***** ******** **** ********* **** *** *** **** business ** ************ ********** ** ********** ** ***** ******* ********. This ** *** **********, ***** *** ****/*** *** ***/*********** *****. The ******* ******** **** **** ******* ******* ** ** **** large-scale ******* ** *** **********, ********* *** ******** ************** *******. The **** ***** ** *********'* **** ** ******** ** ****:

***** ***** ***** ** ***** *** ***** **** ***** ******* in ***** ** ***** **** *****, **** *** ********* **** time-consuming ** *** ***** ***** *** ******** ******* ** ****** as *** **** **** *****-***** ********* *** ***** ********, *** those **** ******* ***** ** *** ******** ******** ***** ********* systems **** ***** *********.

Energy ****** *** ********

********* ******* *** ****** ******** ******** **$* ******* ******, ****** ** ********** *** *** ******** ** **** ****** apparently ****** **** ***. ***** *** *** **** ******* ** be **** *** *** **** * **** ** *******, ** the *** **** **** *** ** *******, *** ********* ** the ********** *** ******* ********* ******** **** *********** ****** ** Honeywell's ******** *** *********** ***** *********** *******. **'* ******* ***** now ** *** ******** **** ** *** *** **** ** just ********* ********** ** *** *** ** ** *************** ******** segment, ** * **** ** ***** *** ***** ** **** core ************ *******. ***** **** *** ******** ** *** *** business ******* ** ** ********* ** (* ***********, *** ******** that ***'* ******* * *** ** ********* *&*), ** ***** be **** ** ******** ******* **** **** ** *** ****** as ****, ********** ** **** **** ** ***** ***** ** enhance ***** ***** *********.

********* *** **** ********** * ****** ** ******** **** ***** fall ** *** ****** ****** *** ******** *******, *** ****'** lost **** **** **** *** **** ******* ***** **** ********* like **** ******* *** ****** ***** ********* ************** ** **** **** ******** ** ********** ****.

The ****** ** ********* ********

********* ** *** * ***** ******* ********** **** ******** ** the ******** ** *** ****** *******. ***** ******** *********** ******** appears ** ** * ****** ********** ***** ** ***** ******* business, *** ***** *********-******* ******** ******** *** ****** * ********** of ***** ********* *******. *** ** ********* ******** ** ** away, *** ** ***** *** ** **** ** ******** * company **** ********* ****** * *** *** *** ** * means ** ************ * **** **** ** *** **.

Comments (17)

Scott Gerrels

IPVMU Certified | 02/25/16 06:39pm

***** **** ******* ** *********, * ***'* ***** ** *** companies **** ***** ** ********** ** ****.

Thumbnail brk1

Brian Karas

IPVM Admin | In reply to Scott Gerrels | 02/25/16 07:51pm

* **** ** ***** **** ***. **** ***'* ******* * high ****** ** "****" ******** ****.

Undisclosed 1 Manufacturer

| 02/26/16 02:26am

**, **'* **** ********* *** *** ********* ******* **** ***** Banks *** **$ ? *** ********* ******** ** ****** ** 3~4B$ ?

**** * ****.

Undisclosed 2

| 02/26/16 05:51am

********* ******* *** ****** ******** ******** ** $* ******* ******, making ** ********** *** *** ******** ** **** ****** ********** coming **** ***.

*** ********* ******** *** **** ******* ***** ******** ******* ***?

Thumbnail brk1

Brian Karas

IPVM Admin | In reply to Undisclosed 2 | 02/26/16 11:11am

*** ** ******** ** $*.** ** *****, ***** ***** ** the ******** ** *** $** ****** *****.

** *** *** ****** ******* *** *********-******* ******** * ******'* get * ***** ****** ** ****, ****** *'* ***** ****** to ***** *** ** * *** ********.

*** *** ********* *** ********* ******** ** ****** ***** **** ADI, *** *******:******-********* * ******* **** ******* ********** **** ** **** *** world *** ***.

Mark Jones

| 02/26/16 01:05pm

* **** ** ***** **** ***. **** ***'* ******* * high ****** ** "****" ******** ****.

* ***** ***** **** *** ******** *********** *** ****** **** statement. * ***'* ***** ********* ********* ** ******* ***** *** cool ******. ******** ****** ** ********** ** ***** ***** *** the ***** ** ***** ************. **** **** *** **** **** this ** ***** *** ** ***********, ********* ** **** ****** choice, ******* **** ** ****** ****** *** ******* *********, *** small ******** ** **********. * ************* ******** **** ********* ** **** *** ****** * **** ****** in **** ******** *** ** ***** ***** ***** ******* ***** opportunities. ******** **** *** ******, ***** ** **** ** **** than *****.

Thumbnail brk1

Brian Karas

IPVM Admin | In reply to Mark Jones | 02/26/16 01:19pm

**** -

****** *** *** ********. **** * *** **** ******** **** is *** "****", * ***'* **** **** *** ******** ******** in ******* ******* **** ******** ** "****" ****** *******, *** rather **** **** ******** ********* ******** **** **** *** **** any ************ ********** ***** ******* ** *** *** *******.

** ***** ****** *** *****, ***** *** **** ****** *** a *** ** ********* **** ***** ** ********** ** ******* this ** **** *********. **'* *** * ***** ******** (**** though *** ******* **** **'* *** ******* ******), **'* **** the ******** ********** ** ******** *** *** *****.

***** **** ** ** *** ***** ** ***** ***** *** buyer ******** *** ******** ** ***** ** ***** **** **** costs, ***** ******* ** **** ******* ******** ****, *** ***** some ***** ***** *** ** **. **'* *** ***** ** be ****** *** ****** *** ******* **** ****** ********* *** speculation, **'* ***** ** ** ****** *** * **** ******* and ********** *****.

John Honovich

IPVM Admin | In reply to Mark Jones | 02/26/16 01:24pm

"******** **** *** ******, ***** ** **** ** **** **** money."

***** *** *****'* ***** **** **** **** ************ ********** ;)

Mark Jones

In reply to John Honovich | 02/26/16 01:54pm

* **** *** ** ****. *** ***, **** ** *****.

John Honovich

IPVM Admin | In reply to Mark Jones | 02/26/16 02:00pm

** *** ***********, * ** ***** *** ****** ***** ************ security ********* ***** ** ************* ** **** *** ******* ** totally ********* **** ******* ******. *** ************ ***** ** ********** short ** *** **** **** ****, ** ***** **** **** destructive ** ********* *** **** **** *********** ********** *** ****** by **** ** ***** (*.*. ******) ********** *******.

Undisclosed 3 Manufacturer

| 02/26/16 01:31pm

* ****** ** *** *** ******* *****'* *** ** *** expected ******, ** ***** **** *** ***** *** **** *****? Maybe **** *** ***** **** ** ********* ******* *** **** some ****/*** **** *** *******?

Undisclosed 4 Integrator

| 02/26/16 07:39pm

**** **** **** *** ***** ** ***** **** *** ****** where ** *******?

Scott Gerrels

IPVMU Certified | In reply to Undisclosed 4 Integrator | 02/27/16 01:26am

****, ***** *** *** ***** *** ***** **** *** *** haven't **** ********** ***?

Chris Hammond

| 02/26/16 11:11pm

********* *** *** ***** *** * *** **** ** ********* but *** *********** ***** ** ** ** *** *** ** large ****** ******* ********. ********* *** *** ***** **** **** dangling *** ***** **** ******** *** ******. *******, ** *** last ** ****** * **** * *********** ****** ** ******* either ********* **** *** ******* ** ********* ** ** ***** primary ********, **, *** ************* ** ** *** ** *** top ***** *********. *** ***** ** **** ********* * *** of ***** *** ***** *** ********* *** ****** *** ******** that *** *** ** ***********. * ***'* **** ** **** noise ** *********** ** ***** *** * ***** ***** ** a ****** *********** *** ********* ** ****** ** ************* *** sales ******. *********, **** ****** **** ** ** **** ** in ***** ** *** *** ** *** *** ***. ****** else ******* ******* ***** ** ********* ****** ****** **** ** style?

Ryan Anderson

| 03/01/16 06:36pm

********* **** ******** *** ***** (*********) **** *******.

John Honovich

IPVM Admin | In reply to Ryan Anderson | 03/01/16 06:38pm

****, ** *** * **** ** **** ****:********* ******** *********

Undisclosed 5 Integrator

| 05/02/16 04:47pm

** *** ******* ** * ******** ***** ******* **** ***'* really ******* **** ** *** ****** *********** ******* ** ***'* move ****** ****** ***** **'* *** ******. ** ** ** shedding * ******** ** *** **** ** *** ******* ******* thin *** **** *******.

***'* ************ **** ** * ****** ********* ** ********* ******, but ** *** ******* ** ******** ******* **** **** * have **** **** ********* *** ** * ******* ****. **'** done ****** **** ****** ***** *** ****** ******* **** ***** versus ****** **** *********** *** **** ***'* **** **** ********* level ** *********** *** ******* **** ***** *******, ** ******* of ***** ******* * ***** ****** ****** ********.

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