Goldman Teams With Former Honeywell CEO in $690 Million M&A Push
(Bloomberg) -- Goldman Sachs Group Inc. is teaming up with former Honeywell International Inc. Chief Executive Officer Dave Cote to raise as much as $690 million to buy industrial companies.
GS Acquisition Holdings Corp. has registered to sell as many as 69 million units at a maximum offering price of $10, according to a filing with the Securities and Exchange Commission. The investment vehicle is described as a “blank check company” for making mergers and acquisitions. Cote will be the CEO, president and chairman.
“We believe Mr. Cote’s industry experience and operating capabilities, paired with Goldman Sachs’ unique sourcing, infrastructure and experience investing in public and private markets, will make us a partner of choice for potential business combination targets,” according to the filing.
Cote, who stepped down as chairman of Honeywell in April, is credited with turning around the company after taking the reins in 2002. At the time, Honeywell was leaking talent and had made large writedowns after the company’s planned acquisition by GE was blocked by European Union regulators. Under Cote, Honeywell’s market capitalization rose to $112 billion from $20 billion at the beginning of 2003.
The former boss also executed a smooth hand-off to his successor Darius Adamczyk, who became CEO last year of the maker of aircraft engines, automation equipment, and energy supplies and services.
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