Honeywell buys into 'smart' technology
28 Jul 2015
Honeywell has announced plans to buy Elster, a supplier of advanced utility metering technologies, for $5.1billion (£3.3 billion).
The move will boost the industrial heavyweight’s portfolio in gas, water, and electricity metering technologies.
Elster is currently owned by Melrose Industries, a UK turnaround specialist of engineering operations across a range of energy sectors.
Elster has outstanding technologies, brands, energy efficiency know-how, and global presence
Honeywell chairman Dave Cote
“Elster has outstanding technologies, brands, energy efficiency know-how, and global presence, all of which we are very well positioned to build on,” said Honeywell chairman and chief executive, Dave Cote.
Utility metering is rapidly evolving as new ‘smart’ technologies and software and data analytics capabilities are being adopted globally. Cote said Honeywell expected strong growth from this segment on the back of new energy efficiency initiatives and mandates, and the need for better management of natural resources.
“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,” he said.
Elster is a global company with key operations in the US, UK, Germany, and Slovakia, and an installed base with more than 200 million metering modules deployed over the past 10 years. The acquisition is expected to be finalised in early 2016.
“This acquisition will allow us to improve customer value with technologies and lifecycle management solutions for industrial end users served by Honeywell’s Environmental Combustion and Controls and Process Solutions businesses,” said Cote.
He added that Elster had a world-class reputation for delivering on the operational efficiency and regulatory certification requirements of utility customers worldwide.
