Honeywell Completes $5.1B Acquisition of Elster; ‘Strong Fit’ for Company’s Home Automation Strategy
Elster is a provider of thermal gas solutions for commercial, industrial and residential heating systems and gas, water and electricity meters.
MORRIS PLAINS, N.J. — Honeywell announced that all necessary regulatory approvals have been received for its acquisition of the Elster Division of Melrose Industries plc and the transaction has been closed. Elster is a 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 $5.1 billion acquisition, which Honeywell announced on July 28, closed earlier than anticipated following approval by Melrose shareholders and required regulatory approvals, including those in the U.S., European Union and China.
“The acquisition of Elster adds outstanding technologies, strong well-recognized 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.”
Honeywell said it expects the acquisition to add approximately $1.8 billion in annualized sales.
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.
“I would like to welcome Elster employees to Honeywell Environmental & Energy Solutions,” said Tim Darkes, president, Honeywell Environmental & Energy Solutions. “It brings outstanding people, technology and a global base of utility customers to augment Honeywell’s energy, home and buildings products and solutions.
“Elster’s position in smart meters is a strong fit with our connected homes and buildings strategy, and our combined combustion product portfolio makes us a leading global provider of industrial combustion components and systems. Together, our goal is to continue to introduce innovative new products for our customers, and leverage our global scale and broad portfolio to drive growth around the world.”
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