Honeywell Hunts for Buyer of U.S. Monitoring Unit
Security Sales has confirmed a report in the St. Paul (Minn.) Pioneer Press that Honeywell Intl. Inc. plans to sell its U.S. security monitoring business, which employs 1,400 people at 62 locations nationwide and has annual sales of $270 million. The company says that selling security monitoring will allow it to concentrate on commercial and industrial customers.
“This decision is not based on the performance of the business. The U.S. monitoring business has been good for us. Instead, the move is consistent with Honeywell offering advanced solutions to global, commercial and industrial customers,” explains Kaye Veazey, vice president of communications for Honeywell’s Home and Building Control Division. Analysts had noted that Honeywell’s acquisition of Pittway Inc. at the end of 1999 created a conflict of interest.
However, Veazey contends the divestiture is more strategically motivated. “As we look at this industry, the monitoring does not fit in,” she says. “We did not purchase Pittway with the intent of selling the U.S. monitoring business. But as we continued evaluating our business, it made sense so we could concentrate on global integrated solutions. We are moving toward a business that offers integrated systems, where we sell and outsource the monitoring, while at the same time offering a bundle of services, including security and other controls, like HVAC. We are looking at large bundled solutions for major customers.” Honeywell hopes to complete a sale by the end of its third quarter on Sept. 30.
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