Honeywell Plans to Sell Defense Unit to Loral

Honeywell Inc. has agreed in principle to sell its Electro-Optics Division to Loral Corp.

Terms of the agreement were not disclosed.

Honeywell’s Electro-Optics Division, which has its headquarters in Lexington, Mass., employs about 1,200 people. It specializes in the design and manufacture of infrared imaging components for military markets.