RAE Systems Inc., the newest firm bought by the Golden Valley division, “is a very compelling strategic fit,” the unit’s CEO says.
Honeywell’s Golden Valley business announced this week that it will buy yet another global gas-detection firm, this time for about $340 million.
The purchase of San Jose-based RAE Systems Inc., is subject to regulatory approval but expected to close in the second quarter.
California-based RAE generates about $107 million in annual sales making handheld and stationary gas and radiation detectors and software for governments, emergency response teams, oil and gas companies and factories in 120 countries.
RAE also makes specialty photo-ionization sensors and wireless devices that help detect hazardous materials and gases. It was founded in 1991 and now has 750 employees.
“RAE Systems is a very compelling strategic fit for Honeywell,” Honeywell Life Safety CEO Mark Levy said in a statement. He noted that Honeywell Life Safety has been in the gas-detection business for decades and expanded through numerous acquisitions. RAE is just the latest.
“Their strong presence in hazardous material, first responder and government complements our existing business very well” and will help expand Honeywell’s “reach” in different parts of the world including “fast growing” China, Levy said.
Once on board, RAE is expected to join the rest of Honeywell Life Safety’s gas-detection portfolio.
The Life Safety division is run out of Honeywell’s $15.5 billion automation and controls business in Golden Valley and has been expanding over the years. Recent acquisitions include Fire Sentry in 2012, Sperian Protection in 2010, First Technology in 2006 and Zellweger Analytics in 2005.
Honeywell International Inc., which was founded in and run from Minnesota until 1999, is based in Morris Township, N.J. It still has substantial manufacturing and research operations in Golden Valley, Minneapolis, Plymouth and Coon Rapids.