Honeywell Buys 70 Percent Stake in Thomas Russell, USA

Honeywell announced its UOP business has signed a definitive agreement to purchase a 70 percent stake in Thomas Russell Co., a privately-held, leading provider of technology and equipment for natural gas processing and treating.

UOP, part of Honeywell Performance Materials and Technologies, is a leader in process technology, materials and equipment to petroleum refining, petrochemical, and gas processing industries.

With the acquisition, Honeywell’s UOP will offer a broad range of key technologies and products that allow shale and conventional natural gas producers to remove contaminants from natural gas and recover high-value natural gas liquids used for petrochemicals and fuel.

Under the terms of the agreement, Honeywell’s UOP will acquire a 70 percent stake in Thomas Russell for $525 million in cash. Honeywell’s UOP has a right to acquire the remaining 30 percent stake and Thomas Russell has a right to sell the remaining 30 percent stake in the company to UOP at a price based on 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 Andreas Kramvis, president and CEO of Honeywell Performance Materials and Technologies. “With this acquisition, UOP will provide a comprehensive range of key technologies to natural gas producers globally, as well as a broad range of technologies to convert natural gas feedstocks into high-value petrochemicals.”

The deal is subject to customary regulatory approvals and is expected to close in the fourth quarter. The company does not anticipate the closing of the deal to impact its earnings per share guidance range for 2012, and it expects the acquisition to be accretive to 2013 earnings.

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LNG World News Staff, October 02, 2012; Image: Thomas Russell