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CHARLOTTE - Honeywell (NASDAQ:HON), a prominent industrial conglomerate with a market capitalization of nearly $150 billion and a strong GOOD financial health rating according to InvestingPro, announced Tuesday it has acquired the Li-ion Tamer business from Nexceris, adding early detection technology for lithium-ion battery fires to its Building Automation segment.
The acquisition builds on a five-year partnership between the companies and is expected to be immediately accretive to Honeywell’s financials, which already show robust performance with $39.2 billion in revenue over the last twelve months. InvestingPro analysis indicates the company is currently trading above its Fair Value, suggesting investors should carefully evaluate entry points. For detailed valuation metrics and 8 additional key insights, check out the comprehensive Pro Research Report.
Li-ion Tamer’s technology detects off-gassing that typically precedes thermal runaway in lithium-ion batteries, providing warnings up to 30 minutes before a fire starts. The system holds more than 30 global patents and is used by battery manufacturers worldwide.
"As lithium-ion battery use grows rapidly across data centers, EV infrastructure, and grid-scale energy storage, the risk of fire is increasing in parallel," said Billal Hammoud, President and CEO of Honeywell’s Building Automation segment.
The acquisition targets the expanding lithium-ion battery market, which is projected to grow by over 30% annually through 2030 to more than $400 billion. The technology will complement Honeywell’s existing fire detection products, including its VESDA early smoke detection system and Connected Life Safety Services.
This purchase follows several recent strategic moves by Honeywell, including the planned spin-offs of its Aerospace Technologies and Solstice Advanced Materials businesses, as well as other acquisitions totaling $13.5 billion since December 2023.
The financial terms of the Li-ion Tamer acquisition were not disclosed.
In other recent news, Honeywell International announced the completion of its liability management reorganization, which involved the allocation of asbestos-related and environmental assets to separate entities. This reorganization, approved by shareholders, does not impact shareholder rights or the number of shares held. In analyst updates, UBS reiterated a Buy rating for Honeywell with a $268 price target, expressing confidence in the company’s management and future growth potential following a meeting with Honeywell’s leadership. Meanwhile, Jefferies raised Honeywell’s stock price target to $240, citing the upcoming Aerospace Technologies spin-off and suggesting increased R&D spending could bolster future growth. Jefferies also previously adjusted Honeywell’s price target to $235, highlighting the company’s success in adapting technology like its inceptor technology for new applications. Additionally, Honeywell appointed Marc Steinberg from Elliott Investment Management as an independent Director, enhancing the board’s financial expertise as the company prepares to split into three independent entities. These developments reflect Honeywell’s ongoing strategic initiatives and organizational changes.
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