Danaher, Honeywell bid for U.K. firm

SAN JOSE, Calif. — A bidding war has broken out between Danaher Corp. and Honeywell International over the rights to acquire First Technology plc, a U.K.-based supplier of sensors, instrumentation and other products for semiconductor fabs and other industries.

On Tuesday (Jan. 24), Honeywell increased its cash offer to acquire First Technology to GBP 406 million ($718 million). Honeywell also said it would exercise all outstanding options and including the assumption of approximately GBP 112 million ($199 million) of outstanding debt.

"The acquisition's strategic value remains compelling to Honeywell at the increased offer price in light of the strong fit and realizable cost synergies between our Life Safety division, which includes Zellweger Analytics, a global leader in gas detection, and First Technology's gas sensing and gas detection businesses,” said Honeywell Chairman and CEO, Dave Cote, in a statement.

Honeywell anticipates completing the transaction in the first half of 2006, subject to regulatory review. The transaction will not have any impact on Honeywell's 2006 earnings guidance. The company expects the transaction to be accretive to its 2007 earnings per share.

However, on Jan. 20, Danaher announced that it has reached an agreement with the board of directors of First Technology for an acquisition. The aggregate value of the offer is GBP 358 million ($634 million), fully diluted for the exercise of all outstanding options and including the assumption of approximately GBP 107 million ($189 million) of outstanding debt.

The First Technology board unanimously recommended the offer. First Technology plc, headquartered in Egham, United Kingdom, is a global operation with 2005 sales of GBP 163.4 million ($289.1 million). The company’s subsidiaries operate in three business sectors: gas sensing, automotive and special Products, and safety and analysis.