https://www.xrjplcdcs.com  2023-05-16  15:58 Source: PR Newswire

Honeywell (NASDAQ: HON) recently announced its agreement to acquire Compressor Controls Corporation, a subsidiary of INDICOR, for $670 million in cash. American Compressor Control Company is owned by private equity firms Clayton, Dubier&Rice, and Roper Technologies. The acquisition price is approximately 15 times its estimated adjusted EBITDA for 2023. Compressor Control Company of the United States is a leading supplier of turbomachinery control and optimization solutions, mainly providing control hardware, software, and services to industries such as liquefied natural gas, gas processing, refining, and petrochemical.

For Honeywell, the adjusted EBITDA of American Compressor Control Company has added value, and it is expected that its cash investment return will exceed 15% in the fifth year after the transaction is completed.

American Compressor Control Company will integrate into Honeywell’s Process Control Department to strengthen Honeywell’s industry leadership in industrial control, automation, and process solutions, and assist customers in accelerating energy transformation.

This acquisition also enhances Honeywell’s high growth sustainable product portfolio through new carbon capture control solutions, which effectively remove carbon dioxide emissions from treatment plants and even the Earth’s atmosphere under the same turbomachinery conditions.

American Compressor Control Company is the best addition to the Process Control Department as it brings the installation foundation of over 14000 control applications to our product portfolio, combined with our leading asset performance management capabilities on the connected factory platform to accelerate business growth. “said Lucian Bolda, President and CEO of Honeywell Specialty Materials and Technologies Group, By strengthening our digital product portfolio, we are applying new control and automation solutions to areas such as carbon capture and storage, helping customers accelerate their energy transformation

The proprietary performance analysis, optimization algorithms, and health prediction analysis functions of American Compressor Control Company will be added to Honeywell’s existing connected factory platform, allowing comprehensive asset performance management capabilities to be built on a true cloud native architecture, and end users are expected to achieve the maximum extension of production running time at low maintenance costs.

The integration of both parties will provide a complete end-to-end product portfolio for the operation control, safety, and asset performance management of compressors, turbines, generators, and other turbomachinery in the fields of liquefied natural gas, gas processing, refining, and petrochemicals. This type of asset is a key production asset in the industry, which has a significant impact on the downtime, energy consumption, and maintenance costs of end users.

The headquarters of American Compressor Control Company is located in Des Moines, Iowa, USA, with offices in major oil and gas producing areas and approximately 280 employees.

The transaction is expected to be completed in the second half of 2023, depending on customary transaction conditions, including approval from relevant regulatory authorities.