Honeywell International, Morris Township, N.J., and GTCR Golder Rauner LLC, a Chicago-based private equity firm, announced a definitive agreement for the sale of Honeywell Security Monitoring to GTCR Fund VIII L.P. for $315.5 million in cash.

The business will operate as an independent entity following the closing of the transaction, which is expected to be completed by the end of this month.

Under the terms of the agreement, the business will continue to market itself under the Honeywell brand on a transitional basis after the date of closing

“This business has been a non-core asset and it will be more valuable in the hands of an owner committed to its growth,” said Roger Fradin, president and CEO of Honeywell’s Automation and Control Solutions segment.

“This sale is good for Honeywell because it dismisses a part of their business that they seemed ready to depart with for some time and had not aggressively supported,” said John Mack, CEO of USBX Advisory Services based in Santa Monica, Calif. “It’s also good for Honeywell because they no longer have a conflict with their core product business, which is an issue that dealers had raised over the years.”

Founded in 1980 and based in Chicago, GTCR Golder Rauner is a private equity investment firm and long-term strategic partner for management teams.

“Honeywell Security Monitoring is a strong organization that enjoys an excellent reputation in the security monitoring industry. It's a premier platform in an industry we know well and have had much success in,” said David Donnini, senior principal of GTCR. “The management team has done an outstanding job in building this company, and we are excited to work with them to take advantage of the many strong growth opportunities for this business.”

“Now there is a big new independent player in the industry in GTCR Golder Rauner, which is ready to bring significant capital into the business,” Mack said. “They will probably focus on national accounts and multi-location businesses, which is good because they will potentially pose some competition for ADT. ADT historically has not had much real competition in terms of national accounts. In these respects, the sale of Honeywell’s monitoring business is good for the industry as a whole.”