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Diversified technology company, Honeywell International Inc. (NYSE:HON) recently inked a definitive agreement to acquire Italian firm SCAME Sistemi, s.r.l. for an undisclosed amount. The strategic transaction is likely to augment Honeywell’s fire business within the Connected Building solutions portfolio and extend its customer coverage.
Since its inception in 1979, SCAME has created a niche for itself with a wide variety of products in the field of fire & gas detection and fire extinguishing systems. It offers an integrated portfolio of products that are user friendly and highly customizable through a single interface and a supervisory software platform. These include system configuration, testing and monitoring to set the equipment at predefined safety integrity levels according to the unique needs of customers. This, in turn, would allow users to maintain a tolerable risk level for their safety systems and thereby actively manage operating risks for a potentially dangerous system failure.
With such innovative products, SCAME would enable Honeywell to offer a seamless integration of industrial controllers and management systems that facilitate easy access to critical information, alerts and control. This would make industrial sites across the globe more safe and secure, creating new business opportunities for Honeywell, thereby boosting revenues.
Honeywell has outperformed the industry with an average year-to-date return of 34.7% as against a decline of 3% for the latter. Its diversified business portfolio has the potential to earn consistent above-average returns and mitigate operating risks. The company’s diligent focus on working capital management, free cash flow generation and a conservative balance sheet remain key positives amid a challenging macroeconomic environment.
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