Honeywell announced it has agreed to acquire Compressor Controls Corporation (CCC) from INDICOR, LLC, for $670 million in an all-cash transaction.

Source: ARCweb

CCC is a provider of turbomachinery control and optimization solutions, including control hardware, software and services. CCC primarily serves the LNG, gas processing, refining and petrochemical industries. CCC is headquartered in Des Moines, Iowa with offices located in major oil and gas production regions. It employs approximately 280 people. CCC is owned by funds affiliated with private equity firm Clayton, Dubilier & Rice, LLC and Roper Technologies, Inc.

The acquisition will be integrated into Honeywell's Process Solutions business and will strengthen Honeywell's position in industrial control, automation, and process solutions, enabling customers to accelerate their energy transition.

The transaction is expected to close in the second half of 2023, subject to customary closing conditions, including receipt of certain regulatory approvals.

For decades within their niche of the industrial automation market Compressor Controls has maintained a reputation as an expert specialist supplier of turbine and turbo-machinery automation.  This dedicated expertise, combined with their independence of turbine OEMs, has been viewed as an advantage by turbine owner-operators. This acquisition presents the challenge of maintaining a specialty expertise within a far larger organization, but it offers opportunity for growth, given Honeywell’s thorough coverage of the relevant industries. The proof will be in retaining key personnel and in execution.

Harry Forbes, ARC Advisory Group