PAS Inc., a Houston-based supplier of software products and consulting services for the process industries, has sold its advanced process control & optimization business to Honeywell International. The transaction includes the company’s linear and non-linear controls and optimization technologies, as well as all related customer contracts and personnel.
PAS sees the divestiture as a key component for accelerating growth in its alarm management and asset configuration businesses, which it will retain. Honeywell Process Solutions, the Phoenix-based Honeywell unit that will acquire the PAS technology, sees the acquisition enhancing its family of process simulation tools.
Tom Fiske, a director of research for ARC Advisory Group Inc., an industry analyst firm based in Dedham, Mass., applauded the move. “From an industry perspective, ARC views this transaction as a positive for everyone involved. End-users will benefit from the long-term PAS and Honeywell partnership, which will facilitate a seamless transfer of ownership to Honeywell and continued support for the technology.” Fiske said.
For PAS, the deal will provide traction in a burgeoning market for its alarm management and automation configuration management solutions, Fiske continued. The company will benefit from the divestiture by allowing it to concentrate its resources on managing this high-growth business, he noted. Further, Honeywell will benefit by strengthening its competitiveness in the APC and optimization market, Fiske added.
“In order to fully capitalize our market leadership position, we have made a strategic move that will sharpen our focus and strengthen our growth,” said Eddie Habibi, PAS founder and chief executive officer. “Focus defines reality,” he continued, “and our focus is to repeat our 2006 growth rate of over 100 percent in the businesses where we hold significant first-to-market advantages.”
“With this acquisition, we strengthen our offerings in the APC&O market,” said Jack Bolick, president of Honeywell Process Solutions. “This addition allows us to deliver more meaningful process information to operators and engineers to help them align operations with business objectives. Incorporating PAS’ proven advanced process control technology with our own will contribute to that strategy and offer a more innovative product.”
Honeywell Process Solutions