HONEYWELL TO ACQUIRE APPLIED PRODUCT TECHNOLOGY; Acquisition and Related Strategic Alliance Signals Honeywell's Investment in Compressed Air Systems Solutions

Business Wire, August 9, 1996

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 9, 1996-- Honeywell Inc. announced today that it has acquired essentially all the assets of Applied Product Technology (APT), a privately held company that designs, manufactures and assembles compressed air control systems and engineered fluid systems. APT, founded in 1979, is based in Annapolis Junction, Md., and has 15 employees. Terms of the agreement were not disclosed.

APT President Paul Glace will continue to manage the operation from its headquarters outside of Baltimore. APT will be renamed Honeywell Compressed Air Systems and function as a separate unit of Honeywell's Home and Building Control business.

"The purchase of APT fits into Honeywell's strategy to enhance our product offerings through niche acquisitions. This enables us to offer industrial customers solutions for their facilities that increase productivity and decrease operating costs," said Don Bogle, vice president and general manager of the Home and Building Control strategic business unit.

"APT compressed air system control technology, combined with Honeywell's project engineering expertise and turnkey implementation, provide a complete solution for our industrial customers," said Leland Smith, director of Honeywell Home and Building Control's industrial business. "With the addition of APT's control technology, we are well positioned to help industrial customers better manage their compressed air systems -- from demand to supply -- resulting in improved production quality, reduced operating costs and increased profitability."

"This acquisition allows the fruits of our efforts at APT to reach the market it deserves. Being part of such a well-established company in the building controls business, and the opportunities that it will afford us, is something that excites all of us at APT. We look forward to reaching the new heights that Honeywell will bring to APT and our products," said Glace.

APT entered the compressed air business by producing its Series 200 Air Compressor Sequencer. This product used relays, timers and pressure switches to sequence compressors. Today, the Series 600 system uses programmable logic controllers and manages the entire compressed air system. In addition, APT designs and manufactures water pumping and heat transfer systems that are used in industrial processes, and HVAC and plumbing applications.

APT's control system will be combined with a thorough technical analysis of a customer's compressed air usage. Appropriate equipment modification and upgrades ensure improved operation at reduced cost. In a related move, Honeywell also announced that it has entered into an alliance with Plant Air Technology, a consulting company in Charlotte, N.C., specializing in compressed air system technical services. Plant Air Technology will assist Honeywell with customer education and technical expertise for compressed air solutions. Plant Air Technology President Scot Foss leads a team of consultants with combined compressed air industry experience totaling more than 135 years. This team has performed more than 1,000 industrial plant air system audits worldwide.

"Honeywell's alliance with Plant Air Technology further solidifies our ability to analyze and find quality-improvement and cost-reducing solutions for complex compressed air systems," said Smith. "Their industry experience and reputation, coupled with the technological expertise of APT, rounds out our offering for industrial facilities and enables customers to better manage their compressed air systems."

Honeywell Home and Building Control provides products and services to create efficient, safe, comfortable environments. The business offers controls for heating, ventilating, humidification and air-conditioning equipment; security and fire alarm systems; home automation systems; energy-efficient lighting controls; and building management systems and services.

Honeywell is a global controls company focused on creating value through technology that enhances comfort, improves productivity, saves energy, protects the environment and increases safety. The company services customers worldwide in the homes and building, industrial, and aviation and space markets. Honeywell employs 53,000 people in 95 countries and had 1995 sales of $6.7 billion.

CONTACT: Lynne M. Warne

Honeywell Inc.

Home and Building Control

Honeywell Plaza

Minneapolis, MN 55408

(612) 951-2296