Honeywell signed an agreement to acquire the Elster Division of Melrose Industries for about $5.1 billion. Elster is a provider of thermal gas systems for commercial, industrial and residential heating systems as well as being a provider of gas, water and electricity meters.
Honeywell says during the past decade, it has completed more than 80 acquisitions adding about $12 billion in revenues, and the Elster acquisition will also enhance its growth. The Honeywell Operating System will be a major factor in creating new synergies that will increase the growth and profitability of each of Elster’s businesses, according to Honeywell.
Elster employs about 6,800 people with major locations in the United States, Germany, the United Kingdom and Slovakia. The company has deployed more than 200 million metering modules over the course of the last 10 years.
The acquisition will allow Honeywell to provide more services for end users served by Honeywell’s Environmental Combustion and Controls and Process Solutions businesses. In addition, Elster’s gas, electric and water meters will boost Honeywell in the metering segment.