Summary
Honeywell International Inc. (HON) announced a significant strategic move through its wholly-owned subsidiary, Honeywell Specialty Materials LLC, entering into a definitive agreement to acquire the remaining 50% membership interest in UOP LLC. The transaction, valued at $825 million plus or minus 50% of UOP's net cash at closing, is expected to be completed in the fourth quarter of 2005, subject to regulatory approval. This acquisition will result in Honeywell gaining full 100% ownership of UOP. UOP is a well-established leader in providing process technology, catalysts, and consulting services to the petroleum refining, petrochemical, and gas processing industries, with reported sales of approximately $1.2 billion for the fiscal year ended December 31, 2004. This move signifies Honeywell's intent to consolidate its position and control within this critical sector, potentially enhancing its integrated offerings and market presence.
Key Highlights
- 1Honeywell to acquire full 100% ownership of UOP LLC.
- 2Transaction value set at $825 million, adjusted by 50% of UOP's net cash at closing.
- 3Deal subject to regulatory review and expected to close in Q4 2005.
- 4UOP is a leading international supplier and licensor for the petroleum refining, petrochemical, and gas processing industries.
- 5UOP generated approximately $1.2 billion in sales for fiscal year 2004.
- 6This acquisition will consolidate Honeywell's control over UOP, which has been a joint venture since August 1988.