Honeywell to sell its Consumables Solutions business to B/E Aerospace for $1.05 billion

Honeywell Aerospace (NYSE: HON) announced today that it signed a definitive agreement to sell its Consumables Solutions business to B/E Aerospace for $1.05 billion, consisting of at least $800 million in cash and the remainder in shares of B/E common stock. The transaction is expected to close in the third quarter subject to regulatory approval.

Consumables Solutions is a global distributor of aerospace fasteners and hardware, and provides custom logistics services to original equipment manufacturers, airlines, repair shops, flight service centers and distributors. The business generated 2007 revenues of $524 million.

"While Consumables Solutions is a growing business, it no longer fits with Honeywell Aerospace's strategic focus on more advanced technologies for the entire aircraft," said Rob Gillette, Honeywell Aerospace President and Chief Executive Officer. "B/E Aerospace's focus on the distribution of commodities makes this business a better place for Consumables Solutions' growth over the long-term. We look forward to working with B/E Aerospace under long-term supply and license agreements."