Honeywell has agreed to acquire Sundyne from private equity firm Warburg Pincus for $US2.16 billion in an all-cash transaction.
Sundyne is a leader in the design, manufacturing and aftermarket support of highly-engineered pumps and gas compressors used in process industries.
The addition of Sundyne's differentiated equipment will enhance the ability of Honeywell's Energy and Sustainability Solutions (ESS) business segment.
Sundyne's deep customer relationships, best-in-class products and technology will unlock strategic growth potential for Honeywell UOP's value chains in refining and petrochemicals, liquefied natural gas (LNG) and clean and renewable fuels.
The combination will result in an improved product offering for customers as Honeywell Forge, a leading IoT platform, will enable the digitalisation of Sundyne's equipment to enhance reliability and predictive maintenance.
Utilising Honeywell's advanced R&D capabilities, the combined company will also be able to further accelerate new product development in the pumps and compressors space.
Honeywell chair & CEO, Vimal Kapur, said the acquisition will create strategic growth opportunities in attractive verticals.
“Sundyne's vast installed base of top-of-the-line pumps and compressors will further strengthen Honeywell's brand in the process industry and create significant opportunities for us to continue expanding our aftermarket services business,” he said.
Headquartered in Arvada, Colorado with additional locations around the globe, Sundyne brings approximately 1,000 skilled employees and a significant recurring aftermarket revenue generated from an extensive installed base.
The integration is expected to generate material run-rate revenue synergies with Honeywell UOP process licensing and modular capabilities, as well as a global sales reach.
President and CEO of Honeywell's ESS segment, Ken West, said the company will be able to offer customers a more comprehensive portfolio of solutions to meet their evolving needs.
Warburg Pincus managing director, Dan Zamlong, said over the past five years Sundyne's focus on diversifying its end markets, investing in innovative products, and optimising its operations has set a solid foundation for sustained, above-market growth.