Honeywell Adds to Merger and Acquisition Activity to Start Q4

Andrew Klips |

Honeywell Adds to Merger and Acquisition Activity to Start Q4The fourth quarter is kicking-off with merger and acquisition activity in the headlines. 3M Co. (MMM) has said it has reached an agreement to buy ceramic armor maker Ceradyne Inc. (CRDN) for $860 million. Separately, Honeywell International Inc. (HON) reported that it will pay $525 million in cash to secure a 70 percent stake privately-owned Thomas Russell Co. Thomas Russell is a manufacturer of technology and equipment for natural gas processing and treating specializing in the design, engineering, fabrication and start-up of skid-mounted modular packaged plants systems.

2012 revenue for Thomas Russell is expected to be in the area of $425 million.

UOP, a part of Honeywell Performance Materials and Technologies, is a leading international supplier and technology licensor for the petroleum refining, gas processing, petrochemical production and major manufacturing industries. Per the agreement, UOP will hold the right to purchase the remaining 30 percent of the company and Thomas Russell has the right to sell it at a price later decided based upon operating income performance.

"Thomas Russell Co. is a terrific complement to our current business and is particularly well positioned to serve the growing market for processing shale gas, as well as gas from oil fields," said Honeywell Performance Materials and Technologies CEO Andreas Kramvis.

Honeywell expects to close the deal in the fourth quarter and said the deal would not impact its 2012 earnings per share, but expects it to add to its 2013 profit.

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Companies

Symbol Name Price Change % Volume
HON Honeywell International Inc. 115.98 -0.85 -0.73 2,348,311
MMM 3M Company 177.39 -2.46 -1.37 1,910,978
WGL WGL Holdings IncCommon Stock 65.09 -0.80 -1.21 196,145

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