Morristown-based Honeywell announced Tuesday an agreement to acquire San Jose, Calif.-based RAE Systems, Inc., a manufacturer of fixed and portable gas and radiation detections systems, and software for $340 million.
The agreement is expected to close in the second quarter of 2013.
The purchase price translates to approximately 13 times RAE Systems' estimated 2013 earnings before interest, taxes, depreciation and amortization. RAE Systems had 2012 sales of approximately $107 million, and has approximately 750 employees.
"RAE Systems' geographic, manufacturing and distribution footprint, especially in high-growth countries like China, will help to make our already-strong gas detection portfolio an even greater global franchise in a very good industry. RAE Systems is a very compelling strategic fit for Honeywell," said Mark Levy, president and CEO of Honeywell Life Safety.