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Honeywell Acquires Ortloff Engineers

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Honeywell acquires Ortloff

On September 4, Honeywell (HON) announced that it acquired Ortloff Engineers. Honeywell didn’t disclose the financial aspects of the deal. Honeywell said that the acquisition won’t impact its earnings guidance. On August 23, Honeywell increased its fiscal 2018 adjusted EPS guidance by $0.05 to $8.10–$8.20.

The acquisition is expected to be integrated with Honeywell UOP’s gas processing and hydrogen business. The acquisition will likely help Honeywell’s UOP business and eventually its Performance Materials and Technologies segment. In the previous quarter, UOP increased 6% and reported revenues of $678 million.

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John Gugel, the president of Honeywell’s UOP business, said, “For decades, Ortloff technology has defined the forefront of gas processing technology. That enables our customers to realize very high returns from their investments in natural gas separation. This differentiated, highly advanced technology, allows our customers to meet stringent process guarantees, while their operations perform at a best-in-class level. Ortloff also has unmatched expertise in sulfur recovery that tie in extremely well with our gas and refining portfolios.”

About Ortloff

Ortloff Engineers is a worldwide leader in cryogenic gas liquids recovery, sulfur recovery, LNG processing, and sour gas processing plant design. The company holds patents for recycle split vapor, carbon dioxide control, single column overhead recycle, and advanced natural gas liquids extraction. The acquisition complements Honeywell’s UOP business.

Investors could hold Honeywell indirectly by investing in the Invesco Aerospace & Defense ETF (PPA), which holds 7.1% of its portfolio in Honeywell. The fund also provides exposure to Lockheed Martin (LMT), United Technologies (UTX), and Boeing (BA) with weights of 6.9%, 6.8%, and 6.7%, respectively.

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