Industrial Company Acquiring Honeywell, Litton Medical Electronics Units
NEW YORK (AP) _ PPG Industries Inc., a manufacturer of chemicals, glass and coatings, said Thursday it has agreed to acquire the worldwide medical electronics units of Honeywell Inc. and Litton Industries Inc.
The move into the high technology instrumentation business will cost PPG up to $100 million, with the new units expected to generate sales of more than $150 million this year, said Vincent A. Sarni, chairman of the Pittsburgh- based company.
The acquisitions will make Pittsburgh-based PPG one of the world’s leading suppliers of instrumentation and systems for critical care and cardiovascular applications, the company said.
Sarni said the company recognized that continued expansive growth is not likely in its existing businesses, even though they are financially ″very strong.″
″What we’re talking about here is positioning the company for the 21st century,″ he said.
PPG will buy the Pleasantville, N.Y.-based operations of Honeywell’s medical electronics division, which produces instruments for hospital cardiac catheterization laboratories, among other things.
PPG will also purchase more than 80 percent interest in Honeywell’s medical electronics business at Best, Netherlands, along with Honeywell’s international sales and service facilities for those products.
From Litton, PPG will purchase a Frieburg, West Germany-based medical electronics business operated by Hellige, a Litton subsidiary. Hellige makes patient-monitoring equipment.
PPG will also buy the service portion of Litton’s Datamedix unit at Sharon, Mass., a U.S. distributor of Hellige products and other diagnostic devices.
Sarni said the agreements are subject to certain corporate and government approvals, including that of the West German Cartel Office. He said PPG will pay with a combination of cash and debt.