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Based in Germany, Elster employs around 6,800 people
29/07/2015
Honeywell buys Elster for US$5.1bn
Sees metering technology as growth area
Richard Jansen-Parkes
HONEYWELL is to buy advanced energy and water metering company Elster from the UK’s Melrose Industries for US$5.1bn.
Based in Germany, Elster employs around 6,800 people. It produces meters for both industrial and residential systems, as well as flow computers and regulators for the gas industry. The deal will give Honeywell access to both Elster’s smart meter technology and its array of customers.
“Elster has outstanding technologies, brands, energy efficiency know-how, and global presence, all of which we are very well-positioned to build on,” says Honeywell chair and CEO Dave Cote.
“We expect that energy efficiency initiatives and mandates and the increased need for natural resource management will drive meaningful and sustained growth for Honeywell in the metering segment.”
He adds that utility metering in particular is rapidly evolving as new “smart” technologies and software and data analytics capabilities are becoming adopted around the world.
The acquisition comes as Honeywell targets spending US$10bn buying new businesses by the end of 2018 – a goal it expects to meet.
