Elster

Elster - solution provider in the field of gas heating for commercial, industrial and premises, systems of accounting of water, gas and electric power.

The company creates smart meters, the software and solutions for data analysis.

The staff of Elster makes about 6800 people, the largest divisions of the company are located in the territory of the United States, Germany, Great Britain and Slovakia. For the last 10 years the company installed more than 200 million measuring modules.

History

2015: Honeywell buys Elster

On August 12, 2015 it became known of signing of the final agreement by Honeywell company about merger of division of Elster of Melrose Industries plc company.

Transaction amount can be $5.1 billion. The transaction price by 12.6 times exceeds the amount of expected income Elster in 2015 before interest contribution, taxes, wear and depreciation (an indicator of EBITDA). Absorption is planned for the first quarter 2016. The agreement is regulated by usual conditions of closing of the transaction, including conducting check on compliance to requirements of the legislation and shareholder voting of Melrose.

"Merger of Elster in the future will make considerable profit for shareholders of Honeywell as will serve expansion of scales of our activity worldwide, creating opportunities for profile and non-core growth. Besides, Honeywell will be able effectively to run business of this company and to accelerate its development due to use of our technologies, knowledge in the field of the software and presence in regions with high growth rates — the chairman of the board of Honeywell Dave Cote said. — Elster possesses remarkable technologies, brands and a know-how in the field of energy saving, the company is provided worldwide that gives excellent starting positions for further development. Merger of Elster also creates the new platform for the further absorption performed by Honeywell for the purpose of business development and expansion of global presence. The advantage of this transaction for Honeywell will be noticeable at once and, as expected, will increase in 2016-2017. This great acquisition for Honeywell and our shareholders".

According to the management of Honeywell, absorption will allow to improve consumer value due to technologies and solutions in the field of management of lifecycle for end industrial users who offer divisions "Household automatic equipment and process automation of burning" and "Industrial automation". The gas division of Elster makes products on which there is a great demand among consumers of natural gas. The company possesses a trusted world network of sale, and it can offer numerous opportunities of cross-sales of technologies of Honeywell to new customers.

No changes in the forecast of Honeywell for 2015 published in release based on the second quarter are expected. Honeywell assumes that the watering effect of the transaction concerning a net profit per share in 2016 will be insignificant.