Honeywell : Melrose to return at least $3 billion to investors after Elster sale
October 06, 2015 at 02:45 am EDT
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(Reuters) - Engineering company Melrose Industries Plc (>> Melrose Industries PLC) said it intends to return proceeds of between 2 billion pounds and 2.5 billion pounds to shareholders following the sale of its utility consumption metering business.
(Reuters) - Engineering company Melrose Industries Plc (>> Melrose Industries PLC) said it intends to return proceeds of between 2 billion pounds and 2.5 billion pounds to shareholders following the sale of its utility consumption metering business.
The turnaround specialist, which follows a buy-improve-sell strategy, said it would create a holding company, to be named New Melrose, for the return of capital.
Melrose sealed a deal to sell its Elster business to Honeywell International Inc (>> Honeywell International Inc.) for about $5.1 billion earlier this year. The deal is expected to close in the first quarter of 2016.
(Reporting by Esha Vaish in Bengaluru; Editing by Anupama Dwivedi)
Honeywell International Inc. specializes in the manufacturing and marketing of industrial equipment. The group also offers maintenance, technical assistance and engineering services. Net sales break down by family of products as follows:
- aeronautical equipment (37.2%): engines, navigation hardware and software, propulsion and communication systems, satellite and space components, lighting equipment, wheels, etc. The group also offers turbochargers for motor vehicles;
- performance materials and technologies (31.4%): polymers, fibers, resins, acids, additives, catalysts, sorbents, semiconductor packaging materials, coating materials, etc.;
- building automation and control systems (16.4%): heating and ventilation control systems, fire alarms, thermostats, monitoring systems, etc.;
- security and productivity optimization solutions (15%): personal safety equipment, warning systems, gas detection systems, data collection and thermal printing computer solutions, warehouse and supply chain automation systems, data and production process management solutions, etc.
Net sales are distributed geographically as follows: the United States (57%), Europe (22%) and other (21%).
HONEYWELL INTERNATIONAL INC. 
