GTCR carves out Honeywell security business

The Chicago-headquartered private equity group has agreed to acquire Honeywell Security Monitoring in a $316m transaction.

GTCR Golder Rauner, the Chicago-based private equity house, has agreed to acquire Honeywell Security Monitoring, the security services division of global technology and engineering conglomerate Honeywell International.

Under the deal, led by GTCR senior principal David Donnini and subject to regulatory approval, the firm will pay $315.5 million (€261.1 million) in cash for the division.

The firm is investing from GTCR Fund VIII, a $1.85 billion (€1.54 billion) vehicle closed in 2003.

Honeywell Security Monitoring provides burglary and fire protection, access control, video surveillance, maintenance and monitoring services to approximately 120,000 commercial and residential customers in the US. The business has 800 employees and 45 branch locations.

According to a press release, the company will retain the Honeywell brand on a transitional basis once the deal has completed. 

GTCR, led by senior principal Bruce Rauner, was founded in 1980. The firm currently manages over $6 billion of capital.

GTCR’s speciality is to build investment cases around high calibre executives it tries to get close to prior to identifying suitable assets for investments.