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.