Why Honeywell (HON) Is Buying Rocky Research

By Amit Chowdhry ● Oct 11, 2020
  • Honeywell (NYSE: HON) recently announced it is buying Boulder City, Nevada-based technology leader Rocky Research. These are the details.

Honeywell (NYSE: HON) recently announced it is buying Boulder City, Nevada-based technology leader Rocky Research. This acquisition expands Honeywell’s existing broad portfolio, which includes power generation systems, energy storage, and power and thermal management systems. And it also combines Rocky Research’s proven R&D capabilities with Honeywell’s worldwide reach and engineering integration, test and production expertise.

The acquisition of Rocky Research also positions Honeywell with an advanced capability in the fast-growing power and thermal management market. And the combined and differentiated capabilities of Rocky Research and Honeywell will help reduce the size, weight, power and cost of thermal and power management and hardware systems. Rocky Research will be integrated into Honeywell’s Aerospace business.

Rocky Research’s sole owner President and CEO Uwe Rockenfeller, will join Honeywell and continue to serve as president. Rocky Research will be held as a wholly-owned subsidiary focused on power and thermal research and development. Rocky Research’s current location in Huntsville, Alabama, will remain a key integration and testing site and its headquarters in Boulder City will serve as a research and development center.

Rocky Research’s focus on thermal management applications are complementary to Honeywell Aerospace’s existing technologies. And Rocky Research has won several major contracts supporting various U.S. Department of Defense projects, including providing power and thermal management systems to one of the U.S. Army’s highest priority programs. And beyond defense applications, Rocky Research also addresses emerging Homeland Security needs, including the protection of critical infrastructure like airports, power plants, and stadiums.

Honeywell’s Aerospace portfolio also includes an array of related solutions, including power generation systems that provide up to 1 megawatt of continuous output, state-of-the-art cooling systems, and technologies for pointing and stabilization.

The terms of the deal were undisclosed. And there is no change to Honeywell’s third-quarter outlook as a result of the deal.

Honeywell received a price target increase from $185 to $198 by JPMorgan analyst Stephen Tusa earlier this week. And Tusa kept an “Overweight” rating on the shares. Over the past week, the stock price of Honeywell moved up 4.43%.


“Rocky Research is an ideal addition to Honeywell’s expanding product portfolio. Effective cooling systems optimized for size, weight and power are critical to meet the growing need for aircraft electrification, unmanned and autonomous aerial vehicles, and related systems. Rocky Research will augment Honeywell’s existing technology capabilities in these areas.”

— Mike Madsen, president and chief executive officer of Honeywell Aerospace

“Honeywell and Rocky Research are a highly complementary match, fortifying Rocky Research’s technology with Honeywell’s world-class supply chain and manufacturing resources to meet growing demands for this technology,” Rockenfeller said. “As a combined business, we will be able to provide our customer base with a full range of solutions, from prototyping and demonstration to complete product delivery and support.”

— Rocky Research President and CEO Uwe Rockenfeller