Honeywell gets smart with $5.1bn Elster purchase
US automation and control giant adds smart metering specialist to its portfolio.
Honeywell International has agreed to buy German-based metre company Elster Group from Melrose Industries of the UK for GBP 3.3bn ($5.1bn).
Elster is a leading provider of gas, water, and electricity meters, including smart meters and software and data analytics solutions. The company has installed more than 200 million metering modules over the course of the last 10 years alone.
The company also provides thermal gas solutions for commercial, industrial, and residential heating systems and manufactures flow computers and regulators for the gas industry.
Subject to customary closing conditions, including regulatory review and Melrose shareowner vote, the acquisition is expected to occur in the first quarter of 2016.
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.
"Elster's gas, electric, and water meters are highly valued for their reliability, safety, and accuracy. Elster has a world-class reputation for delivering on the operational efficiency and regulatory certification requirements of utility customers globally.”
He continued: “We expect that energy efficiency initiatives and mandates and the increased need for natural resource management will drive meaningful and sustained growth for Honeywell in the metering segment.
“Utility metering in particular is rapidly evolving as new 'smart' technologies and software and data analytics capabilities are becoming adopted around the world and we expect strong growth from this segment globally.
“Elster's differentiated technologies, extensive industry expertise, and relationship with utility customers globally – combined with their strong positions in the highly regulated heating, controls, and metering segments – are a great fit for Honeywell's portfolio," concluded Cote.