Credit: Shutterstock photoHoneywell International Inc.HON has acquired Ortloff Engineers, Ltd., for an undisclosed amount. The move is expected to strengthen the company's gas processing technological capabilities, going forward. Honeywell's share price rallied nearly 2% to $161.79 per share, as of Sep 5, since the buyout deal was closed on Aug 31. The company's board of directors also recently announced the spin-off dividend of Garrett Motion Inc.'s ('Garret') shares.
Inside the Headlines
Ortloff Engineers will be a division of Honeywell UOP's Gas Processing and Hydrogen business. On grounds of the acquisition, Honeywell UOP intends to launch technologies that efficiently procure high-value natural gas liquids (NGLs) from the natural gas streams. Liquefied petroleum gas and NGLs have been in high demand, of late. These gases are used in the production of detergents, automotive products and plastics. Notably, per the U.S. Energy Information Administration, domestic demand for NGLs is currently increasing more than 10% on an annualized basis.
Honeywell UOP has been working with Ortloff Engineers since 2002. The combined technology offerings of the companies are presently installed in nearly 50 gas facilities across the globe. The end users are able to efficiently utilize natural gas resources with these state-of-the-art technologies.
Ortloff Engineers is a privately-owned developer and licensor of specialized gas processing technologies that boost returns in sulphur recovery and gas processing. Notably, the company's non-imitable gas separation maximizing technologies assist in enhancing operational flexibility of plants and boosts returns over customers' plant investments. Additionally, Ortloff Engineers owns technologies which have improved refinery lifecycle and eliminates sulphur from refinery feedstocks.
Honeywell UOP provides equipment and technologies that process, and treats natural gas and also purifies hydrogen used in petrochemicals as well as refining production. It is included in the company's Performance Materials and Technologies business segment.
On the other hand, Honeywell anticipates closing the Garrett divestment by the end of third-quarter 2018. The company's board of directors approved the payment of a dividend of $1.00 per share for Garrett shares. The pro rata dividend will be paid on Oct 1, to shareholders of record on Sep 18, 2018. The Garrett spin-off is in sync with Honeywell's portfolio-transformation strategy. Each shareowner will receive one share of Garrett against 10 shares of common stock of Honeywell.
Over the past three months, Honeywell's shares have rallied 6.4%, outperforming 0.6% growth registered by the industry it belongs to.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
