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Honeywell to acquire RAE Systems for $340M

MINNEAPOLIS (AP) -- Honeywell International Inc. is buying privately held gas and radiation detection system maker RAE Systems Inc. for $340 million.

Minneapolis-based Honeywell, which makes products ranging from aircraft systems to automotive parts and chemicals, said the acquisition will complement its existing business and expand its expertise and its geographic footprint, particularly in high-growth countries like China.

RAE, based in San Jose, Calif., had revenue of $107 million in 2012.

The deal is expected to close in the second quarter of 2013 and does not change Honeywell's 2013 full-year outlook.

Honeywell said the deal expands on its other recent acquisitions, including the gas detection businesses of Sperian in 2010 and Fire Sentry in 2012.

Shares of Honeywell fell 22 cents to $74.37 by midday but remain at the upper end of their 52-week trading range of $52.21 to $75.75.