Honeywell finalise acquisition of Elster
USA – Honeywell have announced that they have completed their acquisition of the Elster division of Melrose Industries. Melrose Industries is one of the foremost providers of thermal gas solutions for commercial, industrial, and residential heating systems and a leading manufacturer of gas, water, and electricity meters, including smart meters and software and data analytics solutions. In addition, Elster also produces gas metering and pressure control devices, as well as supplying total solutions for the gas transmission and distribution industry. The $5.1 billion acquisition had first been announced in July 2015.
Commenting on the confirmed acquisition, Dave Cote, Honeywell Chairman and CEO, stated that “The acquisition of Elster adds outstanding technologies, strong well-recognized brands, energy efficiency know-how, and a global presence to the Honeywell portfolio.”
Mr Cote outlined the reasoning behind the acquisition, saying “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 revealed that, following the deal, Elster’s gas heating and gas, water, and electricity metering businesses are to be integrated with Honeywell’s Environmental & Energy Solutions business (E&ES), while Elster’s upstream and midstream gas applications businesses will be integrated within Honeywell Process Solutions.