Exhibit 99.2
QUESTOR PARTNERS FUND II TO ACQUIRE
HONEYWELL'S BRAKE PRODUCTS BUSINESS
BENDIX, JURID, ROADTUFF BRANDS SERVE GLOBAL
TRUCK, AUTOMOBILE AND OTHER TRANSPORTATION INDUSTRIES;
ANNUAL REVENUES OF GROUP APPROXIMATELY $1 BILLION
SOUTHFIELD, Michigan, and MORRIS TOWNSHIP, New Jersey,
September 5, 2000 - Questor Partners Fund II, L.P. and Honeywell
(NYSE: HON) announced today that they have reached an agreement
in principle for Questor to acquire Honeywell's Friction
Materials business, which supplies brake products to a wide
range of transportation industries. Terms of the transaction
were not disclosed.
The business, which has annual sales of approximately $1
billion, manufactures and markets disc brake pads, drum brake
linings and other brake products for both original equipment
manufacturers and the automotive aftermarket. The business also
distributes brake fluids and parts as well as other braking
components. The brand names involved include Bendix, JURID and
RoadTuff, and the products are used in passenger cars, light-,
medium- and heavy-duty trucks, trailers and other transportation
applications. Honeywell will retain the right to use the Bendix
name in some applications outside the Friction Materials
business.
The Friction Materials business is a separate business unit
from the Bendix Commercial Vehicle Systems business, which will
remain a part of Honeywell.
Honeywell's Friction Materials business, headquartered in
Troy, Mich., has 13 manufacturing plants and five engineering
facilities, situated in nine countries. Customers include most
of the world's leading car, truck and brake manufacturers, as
well as major aftermarket buying groups, automotive retailers
and specialty installers. The Friction Materials business'
successful Bendix brand celebrated its 75th anniversary in 1999.
"The Honeywell Friction Materials business has some of the
best-known brand names in the industry, and a well-deserved
reputation for production and engineering excellence,
understanding brake system dynamics, solving noise, vibration
and harshness problems, and designing and developing
environmentally friendly materials," Jay Alix, managing
principal of Questor, said. "Questor's management has extensive
experience in the automotive industry, where we have lent our
expertise to companies like National Car Rental, Ryder TRS,
Inc., and AP Automotive Systems. We are confident that we will
improve on the Honeywell group's already enviable reputation and
significant market share in the global economy."
"Friction Materials has been a valuable part of our
portfolio over the years, but it no longer fits with our long-
term plans. This transaction will benefit both customers and
employees because of Questor's commitment to the Friction
Materials business," said Michael R. Bonsignore, Honeywell
Chairman and CEO. "Today's announcement is another step forward
in our strategy to sell, fix or close non-core units and
strengthen our core portfolio to increase shareowner value."
The Friction Materials transaction is expected to be
completed later this year, following regulatory review and
compliance with other legal requirements in the various
countries where the businesses operate.
Founded in 1995, Questor has demonstrated its ability to
manage the growth of many companies, including several in the
highly competitive worldwide automotive components sector.
Questor Management Company, headquartered in Southfield, Mich.,
with an office in New York, manages the Questor Partners Funds,
which have more than $1 billion of equity investment capital.
The funds focus on investments in non-core units of Fortune
1,000 companies, underperforming businesses and troubled
companies. Additional information on Questor is available on
the Internet at www.questorfund.com.
Honeywell is a US$24-billion diversified technology and
manufacturing leader, serving customers worldwide with aerospace
products and services; control technologies for buildings, homes
and industry; automotive products; power generation systems;
specialty chemicals; fibers; plastics; and electronic and
advanced materials. The company is a leading provider of
software and solutions, and Internet e-hubs including
MyPlant.com, MyFacilities.com and MyAircraft.com (joint venture
with United Technologies and i2 Technologies). Honeywell
employs approximately 120,000 people in 95 countries and is
traded on the New York Stock Exchange under the symbol HON, as
well as on the London, Chicago and Pacific stock exchanges. It
is one of the 30 stocks that make up the Dow Jones Industrial
Average and is also a component of the Standard & Poor's 500
Index. Additional information on the company is available on
the Internet at www.honeywell.com.
This release contains forward-looking statements as defined
in Section 21E of the Securities Exchange Act of 1934, including
statements about future business operations, financial
performance and market conditions. Such forward-looking
statements involve risks and uncertainties inherent in business
forecasts.
