Honeywell completes acquisition of Elster business
The acquisition, which Honeywell announced on July 28, closed earlier than anticipated
Global oil and gas industry service provider Honeywell has announced that it has completed its acquisition of the Elster Division of Melrose Industries plc.
Elster is a provider of thermal gas products and services 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 July 28, 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,” Honeywell chairman and CEO Dave Cote, said.
“We see Elster as a great opportunity to deploy HOS (Honeywell Operating System) 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.”
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 2016 financial guidance provided on December 16 as a result of the announcement.