Honeywell Announces $5.1 Billion Acquisition Of Elster To Close Earlier Than Expected

Shares of Honeywell International Inc. HON were trading higher by 0.54 percent at $103.15 shortly after Tuesday's opening bell. The company announced it has received all the necessary regulatory approvals to finalize its $5.1 billion acquisition of the Elster Division of Melrose Industries.

Honeywell now expects the transaction to close on December 29, 2015, earlier than previously expected. The company added that there is no change to its prior 2015 and 2016 financial guidance.

Honeywell did, however, state that the acquisition is expected to add around $1.8 billion in annualized sales and creates a "new platform" for organic and inorganic growth.

"The acquisition of Elster adds outstanding technologies, strong well-recognized brands, energy efficiency know-how, and a global presence to the Honeywell portfolio," said Honeywell Chairman and CEO Dave Cote. "We see Elster as a great opportunity to deploy HOS Gold to drive new growth and greater profitability in each of Elster's businesses. This acquisition is expected to generate strong future returns for our shareowners, consistent with what you have come to expect from Honeywell."