Honeywell (NYSE: HON) said Oct. 1 that its UOP business has signed a definitive agreement to purchase a 70 percent stake in Tulsa, Okla.-based Thomas Russell Co., a privately-held, leading provider of technology and equipment for natural gas processing and treating. UOP, part of Honeywell Performance Materials and Technologies, provides process technology, materials and equipment to petroleum refining, petrochemical, and gas processing industries.
Under the terms of the agreement, Honeywell's UOP will acquire the stake for $525 million in cash. Honeywell's UOP has a right to acquire the remaining 30 percent stake and Thomas Russell has a right to sell the remaining 30 percent stake in the company to UOP at a price based on operating income performance.
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 used for petrochemicals and fuel.
The deal is subject to customary regulatory approvals and is expected to close in the fourth quarter.
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