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.”
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.
A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!