Honeywell Acquires Ballard Unmanned Systems

Rhea-AI Summary

Honeywell (NYSE: HON) has acquired assets from Ballard Unmanned Systems, a subsidiary of Ballard Power Systems. The acquisition includes key intellectual property, inventory, and equipment, with the existing team joining Honeywell. This move underscores Honeywell's commitment to the growing unmanned aerial systems (UAS) market, allowing for the production of scalable power systems that use hydrogen fuel cells. These systems enhance UAS capabilities by providing longer flight durations and zero emissions. Financial terms remain undisclosed, and the acquisition does not affect Honeywell's third-quarter 2020 outlook.

Positive

• Acquisition enhances Honeywell's capability in the UAS market.
• Fuel cells provide longer flight times and zero emissions.
• Integration of Ballard's expertise strengthens Honeywell's innovation in power systems.

Negative

• None.

PHOENIX, Oct. 15, 2020 /PRNewswire/ -- Honeywell (NYSE: HON) has acquired assets from privately held Ballard Unmanned Systems, a wholly owned subsidiary of Southborough, Mass.-based Ballard Power Systems Inc. Ballard Unmanned Systems designs and produces industry-leading, stored-hydrogen proton exchange membrane fuel cell systems that power unmanned aerial systems (UAS), particularly those used for energy inspection, cargo delivery, and other commercial and defense applications where demand for UAS services is growing.

Honeywell is acquiring the key intellectual property, inventory and equipment of Ballard Unmanned Systems. Ballard's team of fuel-cell experts will also join Honeywell as part of the acquisition.

"Adding Ballard Unmanned Systems to the Honeywell family is another example of our commitment to invest in the growing UAS segment," said Mike Madsen, president and chief executive officer, Honeywell Aerospace. "We can now begin producing top-quality, scalable power systems for our UAS customers and eventually adapt these systems for other future aerospace, defense and adjacent segment applications."

Fuel cells function much like traditional batteries but with a key difference: They don't run out of power or need to be recharged. A fuel cell uses the chemical energy of hydrogen or another fuel to cleanly and efficiently produce electricity. Unmanned aerial systems powered by fuel cells can fly longer distances, are quiet and have zero greenhouse gas emissions.

Ballard Unmanned Systems' fuel cell power systems can run up to three times longer than batteries and are five times more reliable than small engines. Furthermore, unlike traditional gas engines that have carbon emissions, they utilize hydrogen, a clean source of energy.

With the added capabilities of Ballard Unmanned Systems, Honeywell intends to introduce a family of fuel cell power systems for a variety of UAS vehicles. Honeywell will also collaborate with Ballard Power Systems on broader aviation applications.

Honeywell offers certification expertise as well as a full line of avionics, propulsion and operational systems for unmanned aircraft and UAM vehicles. In June, the company launched a business dedicated to UAS and Urban Air Mobility. Additionally, in September Honeywell opened a new research and development lab to demonstrate the company's technological capabilities in both hardware and software for the UAS and UAM markets.

Terms of the deal were not disclosed, and there is no change to Honeywell's third-quarter 2020 outlook as a result of the acquisition.

About Honeywell

Honeywell Aerospace products and services are found on virtually every commercial, defense and space aircraft. The Aerospace business unit builds aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights and safer skies and airports. For more information, visit www.honeywell.com or follow us at @Honeywell_Aero.

Honeywell (www.honeywell.com) is a Fortune 100 technology company that delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

This release contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, that address activities, events or developments that we or our management intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements are based upon certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. Such forward-looking statements are not guarantees of future performance, and actual results, developments and business decisions may differ from those envisaged by such forward-looking statements. We identify the principal risks and uncertainties that affect our performance in our Form 10-K and other filings with the Securities and Exchange Commission.

 

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SOURCE Honeywell

FAQ

What are the details of Honeywell's acquisition of Ballard Unmanned Systems?

Honeywell acquired assets from Ballard Unmanned Systems, including intellectual property and equipment, to enhance its capabilities in the UAS market.

How will the acquisition affect Honeywell's business?

The acquisition allows Honeywell to produce scalable power systems for UAS and explore applications in aerospace and defense without affecting its third-quarter outlook.

What technology does Ballard Unmanned Systems bring to Honeywell?

Ballard Unmanned Systems specializes in hydrogen-powered fuel cell systems, which provide longer flight durations and are environmentally friendly.

When was the acquisition of Ballard Unmanned Systems announced?

The acquisition was announced on October 15, 2020.

Does the acquisition have any immediate financial impact on Honeywell?

No, there is no change to Honeywell's third-quarter 2020 outlook as a result of the acquisition.