Honeywell Acquires Gas Processing Technology Firm

Energy

Published: October 1, 2012 9:14 am

UOP LLC, a wholly-owned subsidiary of Honeywell International Inc. (NYSE: HON), today announced that it is acquiring a 70% stake in Thomas Russell Co., a technology and equipment company in the area of natural gas processing and treating. Honeywell will pay $525 million for the stake and the right to acquire the other 30% at a price based on operating performance.

Thomas Russell’s technology complements that of UOP in designing and making products that allow natural gas producers to remove contaminants from natural gas and to recover the higher valued natural gas liquids used as feedstock for the petrochemical business and for making some types of fuel.

Thomas Russell is expected to post revenues of about $425 million in 2012 and has installed its products in 10 U.S. states. The acquisition is subject to the usual regulatory approvals and is expected to close in the fourth quarter. Honeywell does not expect any impact to 2012 earnings, but does expect that the deal will add to 2013 earnings.

Honeywell’s shares closed at $59.75 on Friday and are inactive this morning. The stock’s 52-week range is $41.55 to $62.00.

Paul Ausick

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