Honeywell to Acquire Unit of Sempra Energy

Honeywell International Inc. agreed to buy the energy-services unit of Sempra Energy as companies look for ways to cut electricity and gas costs, the companies said Monday.

Terms of the deal weren’t disclosed.

The energy-services group helps government, healthcare facilities, colleges and businesses reduce energy costs, said San Diego-based Sempra, parent of Southern California Gas Co. and San Diego Gas & Electric Co.

The energy-services operation also designs, develops and manages construction of energy-efficient facilities.

“This sale completes two objectives for Sempra Generation,” said Michael R. Niggli, president of Sempra Generation, a Sempra Energy subsidiary that operates power generation facilities for competitive markets.

“It puts our energy-services business under the auspices of a well-respected, international company that specializes in performance contracting and allows Sempra Generation to concentrate on the efficient operation of its existing power plant assets,” Niggli said.

The transaction is expected to close in the second quarter.

Honeywell, the world’s largest maker of building controls, is acquiring companies with products and services related to its existing businesses.

The unit makes thermostats, security systems and industrial controls.

Sales at its automation and control solutions unit jumped 22% to $2.59 billion last quarter, with 17 percentage points coming from acquisitions.

Shares of Morris Township, N.J.-based Honeywell fell 45 cents Monday to $42, while Sempra declined 55 cents to $46.67.