HgCapital grabs crash dummy business

Honeywell has agreed to sell the crash test dummies unit of newly acquired First Technology PLC to HgCapital for $87.3 million.

HgCapital, a European private equity investor, will acquire the First Technology Safety & Analysis (FTSA) business from Honeywell International for £50 million ($87.3 million).

Honeywell, a US industrial and aerospace conglomerate based in New Jersey, just acquired FTSA parent First Technology PLC on March 24 for $508 million. Besides the crash test dummy business First Technology is also composed of a gas sensing business and an automotive product business.

Honeywell said it will keep the other two parts of the company, integrating the gas sensing operations into its automation and control solutions businesses, and it is still deciding what to do with the automotive products operations.

The crash test dummies unit, which employs about 250 people, had sales of $48.1 million for its fiscal year ended April 30, 2005.

HgCapital, based in London, is the successor to Mercury Private Equity, which was founded in 1985. The firm, which has funds under management of £2.5 billion, recently closed HgCapital V on £950 million. The fund had originally set a target of £750 million, but the fund attracted many investors such as Goldman Sachs Asset Management, Harvard Management, Metlife, Pantheon Ventures and Rolls Royce.