US-based diversified technology, manufacturing and services company, Honeywell, has acquired Enraf, a Dutch equipment supplier for bulk storage operations, for $260 million (190 million).
Following regulatory approvals of the deal completed on June 26, Enraf will be part of Honeywell Process Solutions (HPS), expanding Honeywell's global portfolio in high-growth, high-service industries, including oil and gas. Negotiations had been in the pipeline for six months.
'Enraf will enable us to deliver a more comprehensive automation solution in energy production, processing, transport, storage and product distribution,' Jack Bolick, president of Honeywell Process Solutions, states. 'The combined solutions and service of our two organisations will help to drive greater efficiency, safety and reliability to high-valued operations within our customers' value chain.'
Enraf Holding consists of six groups offering solutions for the control and management of land and marine transportation, storage and blending operations in the oil and gas industry. Paul Orzeske, VP at Honeywell Process Solutions EMEA, says this acquisition will also help to expand Honeywell's presence in consulting services and liquid natural gas (LNG). He says that although Honeywell is strong in production, Enraf's strength lies in distribution.
'Enraf is Honeywell's entrance ticket to terminal automation,' Tony Tielen, VP of sales and marketing at Enraf, remarks. 'It's in Honeywell's interest to keep Enraf's current growth base.'
The acquisition also gives Honeywell a way in to the fast-growing marine transport arena. 'By bringing technology and solutions that help efficiently bridge the distance between natural resources and refined products, typically located far from end markets, we create growth opportunities while meeting the world's energy demands,' Orzeske says.
In 2006, Enraf's turnover was approximately $130 million. Commenting on the acquisition price Tielen says: 'Double the turnover is high for our industry. Enraf brings Honeywell future potential and positions the combined business very well for incremental growth.'
