In an all-cash transaction that includes plastics process control systems, Honeywell Inc. agreed to acquire Measurex Corp. for about $600 million or $35 per share. The companies expect to complete the deal in March.
Measurex of Cupertino, Calif., faced high costs in developing the next generation of distributed-control-system equipment, particularly for systems for its largest customers who make pulp and paper.
Honeywell of Minneapolis employs 53,000, had 1996 earnings of $402.7 million on sales of $7.3 billion, and will fund the development work. Measurex employs 2,800 at six sites and many sales offices. The firm earned $36.9 million on sales of $415.9 million for its Dec. 1 fiscal year-end.
Measurex makes computer-integrated control and information systems for batch and continuous manufacturing processes. The firm has orders for about $35 million in equipment from customers making plastics, films and coated products, magnetic media substrate, food and liquid packaging, vinyl products, labels and tapes.
Measurex boosted its scope of web measurement and control systems for plastics, extrusion, coating and nonwoven applications by buying the ConceptOne gauging system from Ohmart Corp. of Cincinnati in 1994.
Domestic Measurex competitors in the plastics segment include Eurotherm Gauging Systems Ltd.'s unit in Billerica, Mass.; NDC Systems in Irwindale, Calif.; and ABB Asea Brown Boveri Ltd.'s industrial systems unit in Columbus, Ohio.
John Gingerich, Measurex president and chief operating officer, will run the new Honeywell-Measurex unit in Cupertino and report to Markos Tambakeras, president of Honeywell Industrial Automation and Control, in Phoenix.