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Honeywell acquires energy control firm for $670m
- May 8, 2023
- Steve Rogerson
Honeywell has acquired Compressor Controls, a provider of control hardware, software and services for the LNG, gas processing, refining and petrochemical segments.
Honeywell is paying $670m to Compressor Controls’ parent company Indicor for the acquisition.
Honeywell expects to achieve a cash-basis return on investment of more than 15% by the fifth year that the company is part of Honeywell.
The acquisition will be integrated into Honeywell’s process business with the goal of strengthening Honeywell’s position in industrial control, automation and process, helping users accelerate their energy transition.
The acquisition also bolsters Honeywell’s high growth sustainability portfolio with carbon capture control, where the same turbomachinery is used to achieve effective removal of CO2 from process plant emissions, and even from the Earth’s atmosphere.
The addition of proprietary performance analytics, optimisation algorithms and predictive health analysis to Honeywell’s existing Forge Performance+ offering should provide end users with the opportunity to increase production uptime and reduce maintenance spend through asset performance management (APM) built on a cloud-native architecture.
“Compressor Control is an ideal complement to our process 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, CEO of Honeywell’s performance materials and technologies division. “By enhancing our digitalisation 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 combination with Honeywell’s existing offerings will provide an 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 are critical production assets in these industries and have impact on the downtime, energy consumption and maintenance expense of end users.
Compressor Control is headquartered in Des Moines, Iowa, with offices 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.