MORRISTOWN (dpa-AFX) - Diversified technology company Honeywell International, Inc. (HON) announced Tuesday that it has signed a definitive agreement to acquire the Elster Division of Melrose Industries plc (MRO.L) for approximately $5.1 billion.
The acquisition is anticipated to occur in the first quarter of 2016. The agreement is subject to customary closing conditions, including regulatory review and Melrose shareowner vote.
Elster is a provider of gas heating, controls, metering, and advanced technologies. The division's consensus sales for 2015 are estimated to be $1.8 billion. Elster employs approximately 6,800 people with major locations in the United States, Germany, the United Kingdom, and Slovakia.
Honeywell further said that there is no change to the 2015 full year guidance it provided in its second quarter earnings release. Honeywell expects that the dilutive impact of the transaction on its 2016 Earnings Per Share to be minor.
For fiscal 2015, Honeywell continues to expect earnings in a range of $6.05 to $6.15 per share and sales in a range of $39 billion to $39.6 billion. Core organic sales growth forecast would be about three percent.
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