Honeywell buys 70 per cent in Thomas Russell for $525 million

Honeywell International, the US-based technology and manufacturing company, today said that its subsidiary is buying a majority stake in privately held Thomas Russell Co. for $525 million in cash.

Honeywell's UOP unit, a part of its performance materials and technologies segment, will buy a 70 per cent stake in Tulsa, Oklahoma-based Thomas Russell.

Under the deal, Honeywell has the right to acquire the remaining 30 per cent at a price based on operating income performance.

Founded in 2002, Thomas Russell specialises in the design, engineering, fabrication and start-up of skid-mounted modular packaged plant systems for the recovery and upgrading of natural gas liquids (NGLs). NGLs, including ethane, propane, and butane are in high demand as feedstocks for petrochemical production.

The company operates a fabrication facility in Port of Catoosa, Oklahoma, and has customer installations in more than 10 states in the US.

Honeywell expects current year revenue to be about $425 million.