For Honeywell, American Compressor Controls is accretive to adjusted EBITDA and is expected to generate a return on cash investment of more than 15 percent by the fifth year after the transaction closes.

The American compressor Control company will be integrated into Honeywell Process Control, strengthening Honeywell’s industry leadership in industrial control, automation and process solutions to help customers accelerate the energy transition.

The acquisition also enhances Honeywell’s high-growth sustainable product portfolio with new carbon capture control solutions, which use the same turbomachinery conditions to efficiently remove carbon dioxide from treatment plant emissions and even from the Earth’s atmosphere.

“American Compressor Control is the perfect complement to Process Control as it brings an installed base of more than 14,000 control applications to our portfolio and accelerates business growth with the leading asset performance management capabilities of our connected factory platform.” “By strengthening our digital portfolio, we are helping our customers accelerate the energy transition by applying new control and automation solutions to areas such as carbon capture and storage,” said Lucian Boldea, president and CEO of Honeywell’s Characteristic Materials and Technologies Group.

Compressor Control’s proprietary performance analytics, optimization algorithms and health predictive analytics capabilities will be added to Honeywell’s existing connected factory platform, enabling comprehensive asset performance management capabilities on a true cloud-native architecture that allows end users to maximize production uptime with low maintenance costs.

The combination will provide a complete end-to-end product portfolio for operational control, safety and asset performance management of compressors, turbines, generators and other turbomachinery in the LNG, gas processing, refining and petrochemical sectors. These assets are critical production assets in the industry and have a significant impact on end user downtime, energy consumption and maintenance costs.

American Compressor Control is headquartered in Des Moines, Iowa, USA, with offices in major oil and gas producing countries and approximately 280 employees.