Honeywell to acquire Compressor Controls Corporation for $670M

Honeywell (HON) announced it has agreed to acquire Compressor Controls Corporation from INDICOR, LLC, which is owned by funds affiliated with private equity firm Clayton, Dubilier & Rice, LLC and Roper Technologies (ROP), for $670M, which represents ~15x 2023E EBITDA on a tax adjusted basis, in an all-cash transaction. CCC is a leading provider of turbomachinery control and optimization solutions, including control hardware, software and services, and primarily serves the LNG, gas processing, refining and petrochemical segments. It is expected to be immediately accretive to GAAP EPS and achieve ~15% cash-basis return on investment in fifth year post-closing. CCC’s EBITDA margins are accretive to Honeywell, and Honeywell is expected to achieve a cash-basis return on investment of more than 15% by the fifth year that CCC is part of Honeywell. The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including receipt of certain regulatory approvals.