Honeywell International Inc. is acquiring Genesis Cable Systems.
The company is making the acquisition by acquiring the remaining 70% stake of Genesis Cable Systems that it doesn't already own.
"It's a great company and that is why we are buying it," says David Gottlieb, vice president of global marketing communications for Honeywell Security.
Honewell announced the agreement on June 3. Terms of the transaction were not disclosed.
Honeywell (Morristown, NY, www.Honeywell.com), a maker of aerospace products and services, inherited the 30% stake in Genesis Cable (Pleasant Prairie, WI, www.genesiscable.com) when it purchased Pittway Corp. in February 2000. Genesis makes low-voltage cable for voice, video, data, home theater, sound and thermostat applications as well as structured wiring for the home networking industry. It employs 270 people at its office and factory in Pleasant Prairie.
Gottlieb says Honeywell made the purchase now because it is pursuing an integrated home strategy that could benefit from Genesis Cable's input. Honeywell is increasingly diving into the home and building control market, and is manufacturing home comfort applications such as home automation and household entertainment components. Genesis makes the Category 5e and 6 voice/data cables that are needed for residential installations.
"These carry the signal throughout the home, and provide the bandwidth necessary in a networked home of the future," says Gottlieb.
Gottlieb says it is too early to talk about specific plans that Honeywell has for Genesis. He says, if the sale is completed, Genesis Cable President Jim Coleman will join Honeywell. But his title has not been determined.
"I don't know if there is a longterm plan or strategy laid out yet. We are buying Genesis because of the company that it is," says Gottlieb.
Genesis was launched in August 1996. After four expansions, its facility is now more than 252,000 square feet and has a capacity for roughly $90,000,000.
