Honeywell expects Elster acquisition to close early

MORRIS PLAINS, N.J., Dec. 22 (UPI) -- Announcing all regulatory hurdles have been cleared, Honeywell expects its purchase of the Elster Division of Melrose Industries to close ahead of schedule.

Elster provides thermal gas solutions for commercial, industrial and residential heating systems. Honeywell, a commercial and defense contractor, announced plans to purchase the company on July 28, 2015. Following government approvals from the U.S., the European Union, and China, the transaction is expected to go through on December 29, 2015.

The transaction, valued at about $5.1 billion, is expected to add roughly $1.8 billion to Honewell's annual sales.

"The acquisition of Elster adds outstanding technologies, strong well-recognized brands, energy efficiency know-how, and a global presence to the Honeywell portfolio," Honeywell CEO and Chairman Dave Cote said in a statement. "This acquisition is expected to generate strong future returns for our shareowners, consistent with what you have come to expect from Honeywell."

Elster's gas heating and metering businesses will be come part of Honeywell's Environmental & Energy Solutions businesses, which is part of Honeywell Automation and Control Solution. Elster's gas applications businesses will become part of Honeywell Process Solutions, which is part of Honeywell Performance Materials and Technologies.

The company says the acquisition does not change the company's 2015 or 2016 financial guidance.