Diversified U.S. manufacturer Honeywell International Inc (HON) said it would pay $338 million to buy King's Safetywear Ltd, a maker of protective shoes for workers in factories, mines and other industrial environments.
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The deal, disclosed on on Tuesday and expected to close early next year, will add a business with about $138 million in annual revenue to Honeywell's lineup of safety equipment for workers, which also includes helmets, gloves and respirators.
Honeywell said the purchase price represents a multiple of about 11.5 times King's estimated 2011 earnings before interest, taxes, depreciation and amortization. It is buying King from Malaysia-based private equity firm Navis Capital Partners, which manages about $3 billion in equity capital.