Honeywell Inc is looking for buyers of four of its defence related businesses that together employ 3,500 people and accounted for $430m of the Minneapolis company’s 1987 turnover of $6,680m. Honeywell does not consolidate turnover from its Honeywell Bull Inc affiliate, simply recording its share of any profits as dividends received. The units now on the block are Electro-Optics in Lexington, Massachusetts; Training & Control Systems in West Covina, California; Defense Communications & Production in Tampa, Florida; and Signal Analysis Center in Annapolis, Maryland, all part of Honeywell Space & Aviation Systems.
The units are expected to fetch a modest premium to the book value of between $100m and $150m, and Honeywell says it may use the proceeds to reduce debt, to invest in its Controls business, or to increase value by buying some of its shares.
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