Honeywell International, manufacturer of automation and control solutions products, announced it will buy Britain’s Melrose Industries’ utility consumption meter business. The deal is estimated to be valued at $5.14 billion. The purchase will help Honeywell to improve its presence in several high-growth regions.
Shares of Melrose grew 6 percent in early Tuesday trading, making it the stock with the highest growth that day on the FTSE-250 midcap index.
Honeywell said that the all-cash purchase of the Elster division of Melrose will hardly impact the company’s 2016 earnings per share.
“Elster’s gas business offers products in high demand among natural gas customers and brings a strong, global distribution network and numerous cross-selling opportunities for existing Honeywell technologies,” Honeywell said.