NEW YORK and MINNEAPOLIS, July 1 /PRNewswire/ -- Kaz Inc., announced today
that it will acquire Honeywell International's (NYSE: HON) seasonal products
business, Honeywell Consumer Products (HCP), which includes products such as
portable air cleaners, humidifiers, heaters, and fans. As part of the
transaction, Kaz will also enter into a long-term, worldwide exclusive
licensing agreement of the Honeywell(R) trademark in these product categories.
Financial terms of the transaction were not disclosed. As part of the
transaction, Centre Partners, a leading middle market private equity firm
based in New York, is making an investment in Kaz.
Kaz, a privately held company based in New York City, is also a worldwide
licensee of the Vicks(R) trademark from Procter & Gamble. Founded more than
75 years ago, Kaz invented the electric vaporizer category and currently is
the world's leading manufacturer of vaporizers and humidifiers under the
Vicks(R) and Kaz(R) trademarks. Kaz's other major product lines include
thermometers and hot/cold therapy. It is ranked number one or two in nearly
every product category in which it competes.
For Kaz, the acquisition will create a business with worldwide sales
exceeding $300 million and a stable of powerful worldwide brands. In addition
to its current Kaz(R) and Vicks(R) brands, Kaz's brand portfolio will be
expanded through this transaction to include products under the Honeywell(R),
enviracaire(R), Duracraft(R), and Burg(R) trademarks.
Richard Katzman, CEO of Kaz said, "This acquisition is an important
milestone in Kaz's evolution into a global leader in health and environmental
consumer appliances. We look forward to working with Honeywell as a licensee.
The new Kaz will have outstanding capabilities and resources, with a great
portfolio of worldwide brands.
Honeywell will continue to be involved in the air-cleaning business
through its existing line of whole-house, indoor air quality, and commercial
air cleaning and humidifier products and systems. Honeywell's automotive
consumer products business, with brand names such as Fram(R), Prestone(R), and
Autolite(R) is unaffected by the transaction.
"With the sale of this business, we will be able to focus our resources on
businesses that are a better fit with our core technology competencies," said
Kevin Gilligan, President and CEO of Honeywell Automation and Control
Solutions. "Even with the sale of this business, the retail channel will
continue to be very important to us. We will continue to have a strong retail
presence with thermostats, furnace filters and whole-house humidifiers. I am
confident that Kaz will re-energize this business and strengthen the Honeywell
brand in these categories," Gilligan said.
Robert Cullen, President of Kaz, noted Kaz intends to maintain the
existing HCP headquarters, selling teams, and distribution points. "We plan to
run these businesses autonomously so we can maintain focus on the unique needs
of each business and the first class level of service our customers have grown
to expect from us."
Jack Waller, General Manager of Honeywell Consumer Products, will join Kaz
as Executive Vice President of the Kaz Home Environment business. "Our team is
excited about the combination with Kaz. Our two businesses complement each
other beautifully, and our combined efforts will allow us to provide our
customers with a steady stream of innovative products across all businesses,"
Honeywell Consumer Products, headquartered in Southborough, Mass., employs
more than 3,200 people globally. It has manufacturing facilities in Newbern,
Tenn., Porto, Portugal; and Shenzen, China; and distribution centers in
Memphis, Tenn., Milton, Canada; and throughout Europe.
Centre Partners Management LLC, with offices in New York City and Los
Angeles, is a private equity investment firm focusing on middle market
companies. Founded in 1986, Centre Partners and its affiliates have invested
over $2 billion of capital in more than 50 private equity transactions.
Kaz was represented by Sawaya Segalas & Co., a New York based investment
banking firm. Lehman Brothers acted as financial advisor to Honeywell
Automation and Control Solutions is a US$8 billion global leader in
providing product and service solutions to create efficient, safe, and
comfortable environments and help business and industry improve productivity
and profitability. It comprises four businesses: Industry Solutions; Service;
Security and Fire; and Control Products. ACS offers heating, ventilation,
humidification and air-conditioning equipment controls, security and fire
alarm systems, home automation systems, energy-efficient lighting controls,
and building management systems and services. It also provides automation
systems, advanced software solutions, and value-added services used in a
variety of industries. ACS is also a global supplier of sensors, switches, and
control products for industrial applications.
Honeywell is a US$24-billion diversified technology and manufacturing
leader, serving customers worldwide with aerospace products and services;
control technologies for buildings, homes and industry; automotive products;
power generation systems; specialty chemicals; fibers; plastics; and
electronic and advanced materials. Honeywell employs approximately 115,000
people in 95 countries and is traded on the New York Stock Exchange under the
symbol HON, as well as on the London, Chicago and Pacific stock exchanges. It
is one of the 30 stocks that make up the Dow Jones Industrial Average and is
also a component of the Standard & Poor's 500 Index. Additional information on
the company is available on the Internet at www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E
of the Securities Exchange Act of 1934, including statements about future
business operations, financial performance and market conditions. Such
forward-looking statements involve risks and uncertainties inherent in
business forecasts as further described in our filings under the Securities
For Kaz Inc.: Chris Craig 212 586 1630 Ext. 313
For Honeywell Automation and Control Solutions: Dan Harrison 763 954 6184
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SOURCE Kaz Inc.