Honeywell International Inc has unveiled a multi-billion dollar deal to buy pump-maker Sundyne in an effort to bolster its energy business ahead of a planned split.
Sundyne, which makes engineered pumps and gas compressors, would be bought from private equity firm Warburg Pincus for $2.16 billion in cash, Honeywell said on Tuesday.
This would add to Honeywell’s energy and petrochemical unit and expand its aftermarket services business, the company said.
“Sundyne's vast installed base of top-of-the-line pumps and compressors will further strengthen Honeywell's brand [...] and create significant opportunities,” chief executive Vimal Kapur commented.
The acquisition follows news last month that industrial giant Honeywell would split into three separately-listed businesses.
Its aerospace division would be spun-off from its automation business and plans progressed to separate its advanced-materials division, Honeywell had said.
Shares were down 1% at $209.99 on Tuesday.