Technology and manufacturing group Honeywell has announced that it is to buy the remaining 50 per cent interest in UOP.

Honeywell already owns half of the company, but has now revealed that it has entered into a definitive agreement with its joint venture partner Dow Chemical that will see it take full ownership.

The deal is expected to close in the fourth quarter of this year and it is thought it will cost Honeywell $825 million.

Commenting on the acquisition, Nance Dicciani, president and chief executive of Honeywell Specialty Materials stated: "UOP is well positioned for growth as the world looks to enhance refining, petrochemical and natural gas capacities to meet increasing energy and feedstock demands."

He added: "We are pleased to be adding such a great business to Honeywell Specialty Materials."

UOP, which supplies and licenses process technology, catalysts, process plants and consulting services to the petroleum and petrochemical industries, had an annual revenue of $1.2 billion in 2004.

The move from Honeywell represents its efforts to build its Specialty Materials business, as it looks to grow the division into a company with annual revenues of over $4 billion by 2006.


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