Honeywell has announced that all necessary regulatory approvals have been received for its acquisition of the Elster Division of Melrose Industries plc. The company anticipated to close the transaction on 29 December 2015.
Elster is a leading provider of thermal gas solutions for commercial, industrial, and residential heating systems and gas, water, and electricity meters, including smart meters and software and data analytics solutions. The acquisition, which Honeywell announced on 28 July 2015, closed earlier than anticipated following approval by Melrose shareholders and required regulatory approvals, including those in the US, European Union, and China.
“The acquisition of Elster adds outstanding technologies, strong well recognised brands, energy efficiency know how, and a global presence to the Honeywell portfolio,” said Honeywell Chairman and CEO Dave Cote. “We see Elster as a great opportunity to deploy HOS Gold to drive new growth and greater profitability in each of Elster’s businesses. This acquisition is expected to generate strong future returns for our shareowners, consistent with what you have come to expect from Honeywell.”
“We are very pleased to welcome Elster’s employees to Honeywell,” added Vimal Kapur, President of Honeywell Process Solutions. “Elster’s wide range of fully connected gas metering products and solutions, will complement and expand HPS’ industry leading portfolio for natural gas transmission, distribution and storage. Elster is joining a global leader in Honeywell, which has significant global resources that will help it grow and continue to innovate. Customers of both Honeywell and Elster will benefit from the strength and technologies of the expanded line of products, services and solutions.”
Elster’s gas heating and gas, water, and electricity metering businesses will be integrated with Honeywell’s Environmental & Energy Solutions business (E&ES), part of Honeywell Automation and Control Solutions. Elster’s upstream and midstream gas applications businesses will be integrated with Honeywell Process Solutions, within Honeywell Performance Materials and Technologies.
There is no change to the company’s 2015 or 2016 financial guidance provided on 16 December as a result of the announcement.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/04012016/honeywell-completes-acquisition-of-elster-2050/