Honeywell Buys Lighting Company
Honeywell Inc. said Wednesday that it has acquired a Simi Valley-based airfield-lighting manufacturer to bolster its share of the $12-billion market for aircraft-landing equipment.
With its acquisition of closely held Hughey & Phillips Inc., the Minneapolis-based avionics giant hopes to provide “one-stop shopping” for airlines and airports looking to enhance current landing procedures with satellite tracking of aircraft, Honeywell Vice President Mike Smith said. Terms of the deal were not disclosed.
Honeywell spokesman Steven Henden said the company plans to continue using Hughey & Phillips’ name in the near term to build on the lighting company’s reputation. In the last 11 years, the company has become a leader in airfield-lighting systems, with domestic market penetration of more than 25% and annual growth of 30%, Hughey & Phillips President Bill Miller said.
“This is a good fit in every way,” Miller said.
Miller said there are no plans to lay off any of Hughey & Phillips’ 105 employees.
Honeywell stock gained $1.06 to close at $78.44 in New York Stock Exchange trading.
Under Federal Aviation Administration regulations, runway and approach lighting is required with all landing systems. Honeywell’s Space & Aviation Control division acquired Hughey & Phillips, Smith said, to provide customers with all products necessary to install an operable landing system.
Hughey & Phillips joins the division’s Airport Systems section, which, since its formation two years ago, has spearheaded the research and development of an aircraft-tracking system that enables pilots to pinpoint their location with the aid of a satellite.
Henden said the satellite landing system allows pilots to land more safely, especially in low-visibility conditions. The system is meant to be used in conjunction with current landing procedures.
Honeywell has sold the system to the Air Force, the Navy and NASA and plans to unveil its first commercial application in a deal with Continental Airlines Inc. in the next few weeks.
