FINANCIAL ANALYST EXPECTS HONEYWELL ACQUISITION TO BE TIP OF MERGER ICEBERG IN THE SECURITY INDUSTRY
In reacting to news of Honeywell‘s purchase, John Charles Mallon, founder and principal of John Charles Mallon & Associates, an investment and banking firm serving the global security industry, says he expects 2000 to be a active year for mergers.
“It means there is one more 800-pound gorilla in the security market,” he says. “Honeywell’s dramatic acquisition of Pittway makes it a major player at the very top of the security industry. Its now-$5 billion in sales of fire and security products rivals Tyco, which is at $6 billion in sales. It’s ironic that Honeywell makes this major move while Tyco is on the defensive because of its own falling stock prices, in the wake of securities litigation against them. In the background of all of this action, there are many other billion-dollar companies in the industry who are also poised for action on the merger front. It should be interesting to watch how Johnson Controls moves. Remember, back when Honeywell acquired Westinghouse, it immediately moved to purchase CardKey.”
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