The firm's UOP subsidiary has signed a definitive agreement
to purchase a 70% stake in Thomas Russell Co., a privately-held
provider of technology and equipment for natural
gas processing and treating.
With the acquisition, Honeywell's UOP will offer a broad
range of key technologies and products that allow shale and
conventional natural gas producers to remove contaminants from
natural gas and recover high-value natural gas liquids (NGLs)
used for petrochemicals and fuel.
Under the terms of the agreement, UOP will acquire a 70%
stake in Thomas Russell for $525 million in cash.
UOP has a right to acquire the remaining 30% stake, and
Thomas Russell has a right to sell the 30% stake in the company
to UOP at a price based on operating income performance.
The deal is subject to customary regulatory approvals and is
expected to close in the fourth quarter.