Honeywell [HON] announced Aug. 12 that it has reached an agreement to sell government services provider Honeywell Technology Solutions Inc. (HTSI) to KBR [KBR] for about $300 million.
HTSI, which has about 3,550 employees and $600 million in annual revenue, provides satellite mission lifecycle services, military equipment prepositioning and logistics services, and cyber and physical security. Its customers are mainly U.S. government agencies, including the Department of Defense, the Intelligence community and NASA.
HTSI, a Honeywell Aerospace subsidiary based in Columbia, Md., “did not align to our current portfolio and long-term strategic plans in Aerospace,” said Honeywell Chairman and CEO David Cote.
For KBR, the acquisition “is in-line with our previously announced strategy to expand our government service offerings into higher end technical services that tend to carry increased margins and reduced levels of risk,” said Stuart Bradie, KBR’s president and CEO.
HTSI will be folded into KBRwyle, a KBR subsidiary. The deal is expected to close by the end of October.