Honeywell and AlliedSignal have signed a definitive merger agreement that will create a global technology company with revenues of $25 billion (R150 billion) and technical and product leadership across a wide range of industries.
The merger combines two global players to create a US Fortune 50 company that brings together considerable management talent and diverse, successful and complementary businesses. With a combined market capitalisation in excess of $45 billion (R270 billion), the new company will have the financial strength, technology leadership and customer focus to accelerate future growth across all its enterprises. The combined company will be called Honeywell and will be headquartered in Morristown, New Jersey, the present home of AlliedSignal. Mike Bonsignore, current CEO of Honeywell, will become CEO of the new organisation.
Commenting on the implications for Honeywell Southern Africa, local MD Nick Buick said, "Although it is a little early to fully appreciate the local implications, several benefits are already obvious. The merger creates a leading global industrial force while the retention of the Honeywell name is testimony to our 114-year legacy and reinforces our brand name recognition both in South Africa and worldwide. In addition, the merger will have a positive impact on free cash flow which will be in excess of $2 billion (R12 billion) by 2002 and which will facilitate and accelerate further advances in technology across all our interests".
The combined company will have a work force of more than 120 000 employees worldwide.
"The merger is an exciting natural fit of two companies whose businesses and cultures are highly complementary," said Larry Bossidy, AlliedSignal Chairman and CEO. "We are both successful, growth-driven technology companies who are intensely focused on performance, delighting customers and making our workplaces world-class. The merger will ideally position the combined entity for enhanced revenue and income growth. AlliedSignal's Board and I have long admired the outstanding job that Mike Bonsignore and his team have done in transforming Honeywell into a knowledge-based, technology-driven provider of solutions and services. His proven management skills will lead the combined company into a new era of dynamic growth."
For details, contact Nick Buick, Managing Director of Honeywell Southern Africa on telephone (011) 805 1201 or fax (011) 315 2179.
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