- Compressor Control Corporation technologies combined with
Honeywell's Forge offering to deliver the most comprehensive Asset
Performance Management capability in the industry
- Combined installed base with Honeywell Process Solutions
creates the world's largest operating fleet of critical process
machinery
- New carbon capture, utilization, and sequestration solutions
further Honeywell's high growth sustainability portfolio
- Acquisition price of $670
million, representing ~15x 2023E EBITDA on a tax adjusted
basis; Expected to be immediately accretive to GAAP EPS and achieve
~15% cash-basis return on investment in fifth year
post-closing
CHARLOTTE, N.C., April 26,
2023 /PRNewswire/ -- Honeywell (Nasdaq:
HON) today announced it has agreed to acquire Compressor
Controls Corporation (CCC) from INDICOR, LLC, which is owned by
funds affiliated with private equity firm Clayton, Dubilier &
Rice, LLC and Roper Technologies, Inc., for $670 million, which represents ~15x 2023E EBITDA
on a tax adjusted basis, in an all-cash transaction. CCC is a
leading provider of turbomachinery control and optimization
solutions, including control hardware, software and services, and
primarily serves the LNG, gas processing, refining and
petrochemical segments.
CCC's EBITDA margins are accretive to Honeywell, and Honeywell
is expected to achieve a cash-basis return on investment of more
than 15% by the fifth year that CCC is part of
Honeywell.
The acquisition will be integrated into Honeywell's Process
Solutions business and will strengthen Honeywell's leadership in
industrial control, automation and process solutions, enabling
customers to accelerate their energy transition.
The acquisition also bolsters Honeywell's high growth
sustainability portfolio with new carbon capture control solutions,
where the same turbomachinery is used to achieve effective removal
of CO2 from process plant emissions, and even from the Earth's
atmosphere.
"Compressor Control Corporation is an ideal complement to our
process solutions portfolio, as it brings an installed base of
greater than 14,000 control applications to our portfolio and will
enable us to accelerate growth in combination with Forge's industry
leading APM capability," said Lucian Boldea, president and
chief executive officer of Honeywell Performance Materials and
Technologies. "By enhancing our digitalization portfolio, we are
helping customers accelerate their energy transitions through new
controls and automation that, for example, can help with carbon
capture and sequestration."
The addition of CCC's proprietary performance analytics,
optimization algorithms and predictive health analysis to
Honeywell's existing Forge Performance+ offering will offer end
users the greatest opportunity to maximize production uptime and
minimize maintenance spend through the industry's most
comprehensive Asset Performance Management (APM) capability built
on a true, cloud-native architecture.
The combination of the company's existing offerings will provide
the most complete end-to-end portfolio of products for operational
control, safety, and asset performance management of compressors,
turbines, generators and other turbomachinery in the LNG, gas
processing, refining and petrochemical segments. These assets are
the most critical production assets in these industries and have
significant impact on the downtime, energy consumption, and
maintenance expense of end users.
Compressor Control Corporation (CCC) is headquartered in
Des Moines, IA with offices
located in major oil and gas production regions. It employs
approximately 280 people.
The transaction is expected to close in the second half of 2023,
subject to customary closing conditions, including receipt of
certain regulatory approvals.
Honeywell (www.honeywell.com) delivers industry-specific
solutions that include aerospace products and services; control
technologies for buildings and industry; and performance materials
globally. Our technologies help aircraft, buildings, manufacturing
plants, supply chains, and workers become more connected to make
our world smarter, safer, and more sustainable. For more news and
information on Honeywell,
please visit www.honeywell.com/newsroom.
This release contains certain statements that may be deemed
"forward-looking statements" within the meaning of Section 21E
of the Securities Exchange Act of 1934.
Forward-looking statements are those that address
activities, events or developments that management intends,
expects, projects, believes or anticipates will or may occur in the
future. They are based on management's assumptions and
assessments in light of past experience and trends, current
economic and industry conditions, expected future developments and
other relevant factors. They are not guarantees of future
performance, and actual results, developments and business
decisions may differ significantly from those envisaged by our
forward-looking statements. We do not undertake to update or revise
any of our forward-looking statements, except as required by
applicable securities law. Our forward-looking statements are also
subject to risks and uncertainties, including the impact of the
COVID-19 pandemic and the Russia-Ukraine conflict, that can affect our
performance in both the near- and long-term. In addition, no
assurance can be given that any plan, initiative, projection, goal
commitment, expectation, or prospect set forth in this release can
or will be achieved. Any forward-looking plans described herein are
not final and may be modified or abandoned at any time. We
identify the principal risks and uncertainties that affect our
performance in our Form 10-K and other filings with the Securities
and Exchange Commission.
Contacts:
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Media
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Investor
Relations
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Mike Hockey
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Sean Meakim
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(832)
285-4933
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(704)
627-6200
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Mike.Hockey@honeywell.com
|
Sean.Meakim@honeywell.com
|
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SOURCE Honeywell