Honeywell International Inc. has agreed to buy the utility consumption metering business of Britain’s Melrose Industries Plc. for about US$5.1 billion.
It’s the largest acquisition by Honeywell in more than a decade and its first major acquisition since it announced a five-year plan in March 2014 to target at least US$10 billion in deals.
The acquisition gives Honeywell access to Elster Group’s metering technology and customers in the highly regulated heating, controls and metering industries, including smart meters and data analytics, according to Reuters.
“It’s a very good strategic deal,” Sterne Agee CRT analyst Peter Arment said.
“You’ve seen growth of smart-metering technologies for the last ten years and I think there’s a long way to go.”
The company, whose products range from aircraft systems to climate control, is still on the prowl.
“I don’t think we’re done … We’re going to keep going,” chief financial officer Tom Szlosek said
Elster’s sales are estimated to be US$1.8 billion this year, with roughly two-thirds in natural gas, and the rest in electricity and water markets.
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