Honeywell to acquire Elster

Source: www.honeywell.com

By Nancy Bartels

Jul 30, 2015

Honeywell has signed a definitive agreement to acquire the Elster Division of Melrose Industries plc, 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, for approximately $5.1 billion. Elster also manufactures flow computers and regulators for the gas industry.

Elster consensus sales for 2015 are estimated to be $1.8 billion, and the acquisition is anticipated to occur in the first quarter of 2016. The agreement is subject to customary closing conditions, including regulatory review and Melrose shareowner vote.

Honeywell Chairman and CEO Dave Cote said, “Elster has outstanding technologies, brands, energy efficiency know-how and global presence, all of which we are very well-positioned to build on. We will see immediate benefits to Honeywell’s portfolio, accelerating into 2016 and 2017. This is a great acquisition for Honeywell and our shareowners.

“The Elster acquisition proves that we are staying true to our disciplined M&A approach and integration processes because it’s a model that has worked very well for us,” said Cote. “During the past decade, we have completed more than 80 acquisitions adding approximately $12 billion in revenues. We will continue to look for good acquisitions to enhance our growth profile. The Honeywell Operating System (HOS) will be a major factor in creating new synergies that will increase the growth and profitability of each of Elster’s businesses.”

Elster employs approximately 6,800 people with major locations in the United States, Germany, the United Kingdom and Slovakia. The company maintains an installed base with more than 200 million metering modules deployed over the course of the last 10 years.

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