Honeywell announced the acquisition of American Compressor Control Company

     Honeywell announced it has agreed to acquire Compressor Controls Corporation, a unit of INDICOR, for $670 million in cash. Compressor Controls, which is owned by private equity firms Clayton, Dubilier & Rice and Roper Technologies, paid about 15 times estimated 2023 adjusted earnings before tax, interest, depreciation and amortization. Compressor Control is a leading supplier of control hardware, software and services to the liquefied natural gas, gas processing, oil refining and petrochemical industries.

     For Honeywell, American Compressor Controls is accretive to adjusted earnings before interest, taxes, depreciation and amortization and is expected to generate a return on cash investments of more than 15 percent by the fifth year after the deal closes. Compressor Control will be integrated into Honeywell Process Control, strengthening Honeywell's industry leadership in industrial control, automation and process solutions to help customers accelerate their energy transition.

     The acquisition also includes new carbon capture control solutions to enhance Honeywell's portfolio of high-growth sustainable products. The scheme uses the same turbo-machinery to effectively remove carbon dioxide from refineries, even from the Earth's atmosphere.

     "American Compressor Control is the perfect complement to Process Control, as it brings an installed base of more than 14,000 control applications to our portfolio, accelerating business growth combined with the leading asset performance management capabilities of our connected factory platform." "By strengthening our digital portfolio, we are helping our customers accelerate their energy transition by applying new control and automation solutions to areas such as carbon capture and storage," said Lucian Boldea, president and CEO of Honeywell's Characteristic Materials and Technologies Group.

     Compressor Control's proprietary performance analytics, optimization algorithms, and health predictive analytics capabilities will be added to Honeywell's existing connected factory platform, enabling comprehensive asset performance management capabilities to be built on a true cloud-native architecture that allows end users to maximize production uptime with low maintenance costs.

     The integration will provide a complete end-to-end product portfolio for operational control, safety and asset performance management of compressors, turbines, generators and other turbomachinery in the liquefied natural gas, gas processing, refining and petrochemical sectors. Such assets are key production assets in the industry and have a significant impact on end user downtime, energy consumption and maintenance costs.