Honeywell to Acquire Compressor Controls Corp.

The company said the deal would create the world's largest operating fleet of critical process machinery.

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CHARLOTTE, N.C. — Honeywell announced Wednesday that it has agreed to acquire Compressor Controls Corporation from INDICOR LLC — owned by funds affiliated with private equity firm Clayton, Dubilier & Rice LLC and Roper Technologies Inc. — for $670 million.

CCC is a leading provider of turbomachinery control and optimization solutions, including control hardware, software and services, and primarily serves the LNG, gas processing, refining and petrochemical segments.

The all-cash transaction represents approximately 15 times the 2023E EBITDA on a tax adjusted basis.

CCC's EBITDA margins are accretive to Honeywell, and Honeywell is expected to achieve a cash-basis return on investment of more than 15% by the fifth year that CCC is part of Honeywell.  

The acquisition will be integrated into Honeywell's Process Solutions business and will strengthen Honeywell's leadership in industrial control, automation and process solutions, enabling customers to accelerate their energy transition.

The acquisition also bolsters Honeywell's high growth sustainability portfolio with new carbon capture control solutions, where the same turbomachinery is used to achieve effective removal of CO2 from process plant emissions, and even from the Earth's atmosphere.

"Compressor Control Corporation is an ideal complement to our process solutions 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, president and chief executive officer of Honeywell Performance Materials and Technologies. "By enhancing our digitalization 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 addition of CCC's proprietary performance analytics, optimization algorithms and predictive health analysis to Honeywell's existing Forge Performance+ offering will offer end users the greatest opportunity to maximize production uptime and minimize maintenance spend through the industry's most comprehensive Asset Performance Management capability built on a true, cloud-native architecture. 

The combination of the company's existing offerings will provide the most complete 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 assets are the most critical production assets in these industries and have significant impact on the downtime, energy consumption, and maintenance expense of end users. 

Compressor Control Corporation is headquartered in Des Moines, Iowa, with offices located 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.

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