(By Balaseshan) Honeywell International Inc. (NYSE: HON) said it has agreed to buy Saia Burgess Controls, a provider of intelligent building controls, from Hong Kong-based Johnson Electric for $130 million.
Saia Burgess Controls will be integrated into the commercial controls portfolio of Honeywell's Environmental and Combustion Controls (ECC) business. The acquisition expands Honeywell's energy controls presence in Austria, Germany and Switzerland.
Based in Murten, Switzerland, Saia Burgess Controls also enhances Honeywell's intelligent building controls portfolio, which includes recently acquired INNCOM, as well as the Alerton, Centraline, E-MON, Trend, Novar Controls, Phoenix Controls and Tridium brands.
The acquisition also gives Honeywell a common global platform on which to drive growth in electrical submeters, which are used by building owners to better manage their energy consumption. Honeywell's E-MON submeter brand is focused on North America, while Saia Burgess Controls' offering is targeted to Europe, Middle East and Africa.
Saia Burgess Controls' products and solutions include programmable controllers, touch-screen panels, electrical submeters, counters and timers for use in HVAC applications, energy management systems and machine and infrastructure controls.
These products and solutions enable multiple technologies to be operated and managed on a single device, such as a Web browser, simplifying and improving building management and automation for commercial and industrial enterprises.
Saia Burgess Controls, with 2011 sales of $93 million (fiscal year ending March 31, 2012), has more than 300 employees and serves customers throughout Europe through a network of more than 500 system integrators. The transaction is expected to close by the end of January 2013 following customary regulatory reviews.
HON is trading down 0.06% at $61.51 on Wednesday. The stock has been trading between $48.82 and $63.48 for the past 52 weeks.