Honeywell Aerospace has finalised a definitive agreement to sell its subsidiary Honeywell Technology Solutions (HTSI) to US-based technology, engineering, procurement and construction company KBR for approximately $300m.
HTSI provides professional space, security, logistics and manpower services for the government services market through three business divisions, namely space, mission support, and security solutions.
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Following the completion of the deal, HTSI will be integrated into KBRwyle, a fully owned subsidiary of KBR.
Subject to customary closing conditions, the deal is expected to be complete this year.
Honeywell chairman and CEO Dave Cote said: "Honeywell continues to evaluate its portfolio while focusing on driving breakthrough growth through advanced software capabilities and technology differentiation.
"As part of this process, we determined that HTSI did not align to our current portfolio and long-term strategic plans in Aerospace.
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By GlobalData“HTSI is a good business with a long heritage in the government services industry, and is well positioned to continue this success as part of KBR."
KBR president and CEO Stuart Bradie said: "This acquisition is in-line with our previously announced strategy to expand our government service offerings into higher end technical services that tend to carry increased margins and reduced levels of risk.
"Adding HTSI's highly specialised and differentiated offerings to KBR's government services portfolio grows our capabilities, as well as our geographic footprint, and provides us access to new funding streams, as well as an outstanding record of past performance.
“The inclusion of HTSI further diversifies KBR's offerings and provides more balance between the engineering and construction (E&C) segment of our business and the rest of KBR's business, which is a combination of our government services (GS) and the technology and consulting (T&C) businesses.”
With around 3,550 employees worldwide, HTSI mainly serves Nasa, the US Department of Defense and the US intelligence community.
The company also provides services throughout the satellite mission lifecycle, military equipment prepositioning and logistics services.
