Honeywell Int'l buying stake in Thomas Russell
MORRIS TOWNSHIP, N.J. (AP) — Technology and manufacturing company Honeywell International is buying a majority stake in privately held Thomas Russell Co. for $525 million in cash to broaden its natural gas processing business.
Thomas Russell, based in Tulsa, Okla., is a provider of technology and equipment for natural gas processing and treating.
Honeywell International Inc. said Monday that its UOP business, which is part of its performance materials and technologies segment, will buy a 70 percent stake in Thomas Russell.
"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," Andreas Kramvis, president and CEO of Honeywell Performance Materials and Technologies, said in a statement.
Honeywell UOP has a right to buying the remaining 30 percent stake of Thomas Russell at a price based on operating income performance.
The transaction is expected to close in the fourth quarter, subject to customary regulatory approvals.
Honeywell expects the deal to add to its 2013 earnings and does not anticipate the transaction's closing to impact its 2012 earnings forecast.
Honeywell International is based in Morris Township, N.J. Its shares finished at $59.75 on Friday. They are near their 52-week high of $62 set in late March. They traded as low as $41.22 almost a year ago.