HONEYWELL AGREES TO PAY $2.2 BILLION FOR PITTWAY, CREATING $5 BILLION INDUSTRY GIANT

MORRIS TOWNSHIP, N.J., and CHICAGO

Honeywell and Pittway Corp. announce they have entered into a definitive merger agreement in which Honeywell will acquire Pittway for $45.50 per share in cash, or about $2.2 billion.  The acquisition, Honeywell’s first transaction since its $14 billion merger with Allied Signal on Dec. 1, is expected to close in the first quarter of 2000.

 
“Pittway adds a dynamic, high-growth engine that will significantly extend our global capabilities in sensors, systems integration and HVAC controls to the rapidly growing $10 billion fire and security industries,” says Michael R. Bonsignore, CEO of Honeywell.

  Pittway is one of the world’s leading manufacturers and distributors of security and fire systems and other low-voltage products for homes and buildings.  Its systems are marketed globally under the Ademco, Notifier, System SensorADI, Northern Computers and other popular brand names.  Since 1993, Pittway’s revenues have grown at a compounded annual growth rate of 23 percent and were $1.3 billion in 1998.

 
Honeywell is a $24 billion diversified technology and manufacturing company that employs approximately 120,000 people in 95 countries.

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