Honeywell today announced its intention to sell its automotive Consumer Products Group business private investment firm Rank Group, in a cash transaction valued at approximately $950 million.
The transaction is expected to close in the third quarter of 2011 subject to regulatory approval and customary closing conditions.
The CPG business, headquartered in Danbury, Connecticut, has more than 2,000 employees producing four consumer automotive brands: FRAM® filters, Prestone® antifreeze, Autolite® spark plugs, and Holts® car care products.
Currently reported within Honeywell's Transportation Systems segment, the CPG business had 2010 sales of approximately $1 billion.
Following the divestiture of CPG, Transportation Systems, which includes Honeywell's global turbocharger and braking businesses, will continue to operate as one of Honeywell's reported business segments.
Rank Group is a New Zealand-based private company which invests across a variety of industries and aims to build and grow leading global businesses, including Reynolds Group Holdings, one of the largest packaging companies in the world.
“We are pleased to announce the sale of CPG to Rank Group,” said Dave Cote, chairman and chief executive officer of Honeywell. "While CPG is a good business, it doesn't fit with our portfolio of differentiated, global technologies.
“We are confident that Rank Group, with its proven track record of investing in and building established franchises, will be a good home for CPG's consumer brands, customers, and employees. We're committed to our Transportation Systems segment and are confident in our leading technology position in the global turbocharger business, aligned with the favorable macro trends of increased fuel economy and lower emission requirements around the world. Smart deployment of CPG sale proceeds, combined with the strong growth outlook for Transportation Systems, will deliver terrific long-term value to our customers and shareholders."
