Honeywell to buy pump maker Sundyne for $2.16 billion

(Reuters) -Honeywell International said on Tuesday it would buy pump-maker Sundyne from private-equity firm Warburg Pincus for $2.16 billion in cash, as the U.S. conglomerate strengthens its energy business ahead of a planned three-way split.

The industrial giant has focused on expanding its presence in the aviation, automation and energy sectors under CEO Vimal Kapur while shedding unrelated assets.

Last month, Honeywell announced a plan to split into three independently listed companies, months after activist investor Elliott Management took a $5 billion stake.

Sundyne's equipment will add to Honeywell's unit that caters to the energy and petrochemical industries, while helping expand its aftermarket services business, Kapur said.

Warburg bought Sundyne in 2020 from funds advised by BC Partners Advisors L.P. and the Carlyle Group.

The acquisition, which is expected to close in second quarter, will immediately contribute to sales growth, segment margin and adjusted earnings per share in the first full year of ownership, the company said.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Shreya Biswas and Leroy Leo)

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