In July Honeywell, a leading global heating controls and metering manufacturer, announced a definitive agreement to acquire Elster. The Elster company acquisition will solidify Honeywell as the world’s leading manufacturer and supplier of highly accurate, integrated metering and utilization solutions to the gas, heating, electricity and water industries.
Elster manufactures flow computers and regulators for the gas industry, thermal gas solutions for commercial, industrial, and residential heating systems including gas, water, and electricity meters. Honeywell will acquire the innovative smart meter technology, software and data analytics solutions, for an approximate total of $5.1 billion USD.
The acquisition is anticipated to occur in the first quarter of 2016 and is subject to customary closing conditions, including regulatory review and Melrose shareholder vote.
Honeywell Chairman and CEO Dave Cote
The acquisition of Elster will generate strong future returns for Honeywell’s shareowners because it increases our growth profile globally – creating both organic and inorganic growth opportunities – and because Honeywell can run this company effectively and accelerate its growth through our complementary technologies, software knowledge, and presence in High Growth Regions…We will see immediate benefits to Honeywell’s portfolio, accelerating into 2016 and 2017. This is a great acquisition for Honeywell and our shareowners.
Elster employs approximately 6,800 people with major locations in the United States, Germany, the United Kingdom, and Slovakia. The company maintains an impressive installed base with more than 200 million metering modules deployed over the course of the last 10 years alone.
During the past decade Honeywell have acquired over 80 businesses adding approximately $12 billion in revenues and will continue to look for good acquisitions to enhance their growth profile.
To find out more about Honeywell technologies in your industry call ABGO on 01902 790 900 and to read the full press release from Honeywell visit http://honeywell.com/News/Pages/Honeywell-To-Acquire-Elster-A-Global-Leader-In-Gas-Heating-Controls-Metering-And-Advanced-Technologi.aspx