A week ago, I wrote that Honeywell (NYSE:HON) had been quieter than most people expected
with respect to M&A, and that automation/controls could be an area
where the company would want to look. A week before that I had written
that Melrose (OTC:MLSPF) (MRO.L) was likely looking to sell its Elster business (in whole or in pieces), return some cash to shareholders, and then move on to its next turnaround opportunity.
In
a peanut butter-meets-chocolate moment, the two companies got together
and made both of those calls come true (more or less). Honeywell and
Melrose announced Tuesday morning that the two companies had reached an
agreement wherein Honeywell will acquire Melrose's Elster business in
its entirety (and including pension obligations) for about $5.1 billion.
This is a very good deal for Melrose and its shareholders, and
management will likely move quickly to share the proceeds and identify
the next target. For Honeywell, too, I believe this is a good deal and
one that could open interesting doors down the road.
Read the full article here:
Honeywell And Melrose Tango For Mutual Benefit
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