"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," Honeywell Performance Materials and Technologies Chief Executive Andreas Kramvis said. He noted that the deal allows Honeywell to "provide a comprehensive range of key technologies to natural gas producers globally, as well as a broad range of technologies to convert natural gas feedstocks into high-value petrochemicals."
Honeywell has a right to acquire the remaining 30% stake and Thomas Russell has a right to sell it to Honeywell at a price based on operating income performance.
The deal is expected to close in the fourth quarter. The company doesn't anticipate the closing of the deal to impact its earnings per share guidance range for the year, and it expects the acquisition to be accretive to next year's earnings.
Founded in 2002, Thomas Russell specializes in the design, engineering, fabrication and start-up of skid-mounted modular packaged plants systems for the recovery and upgrading of natural gas liquids, which are in high demand as feedstocks for petrochemical production. The company's revenue for this year are expected be about $425 million.