Honeywell will be acquiring distribution firm Burtek Systems Corporation and the Security Systems Division of Richardson Electronics. The acquisition will cost $80 million, and had been signed as a "definitive agreement" from the companies.
Adding Burtek gives Honeywell an expanded presence in the distribution field. Burtek distributes fire, CCTV and alarm products, in addition to other low-voltage products and systems like residential audio, data communications, and access control.
Honeywell plans to integrate Burtek's business into ADI, which already has more than 200 branches in its collection. Burtek brings additional presence in the U.S. and Europe, as well as Canada and Latin America, two areas where ADI has not had much presence.
"The acquisition of Burtek will enable us to reach new customers, particularly in Canada, where we see solid growth potential," said Tom Polson, president of Honeywell's ADI Global Distribution business, in a statement released with the announcement of the acquisition. "As we grow, we have the opportunity to be more efficient, broaden our product portfolio and enhance programs that directly benefit customers. The businesses complement each other â€“ and both Burtek and ADI strongly emphasize customer service and solid vendor relationships."