Honeywell (HON) acquired a majority stake in privately-held Thomas Russell on Monday for $525 million in cash as it looks to boost its offerings to natural gas producers. 

The 70% stake improves Honeywell's range of natural gas processing technologies, including the ability to remove contaminants from natural gas and convert natural gas feedstocks into high-value petrochemicals and fuels.  

Thomas Russell is “particularly well positioned to serve the growing market for processing shale gas, as well as gas from oil fields," CEO of Honeywell Performance Materials and Technologies, Andreas Kramvis, said in a statement.

The company, based in Tulsa, Okla., has customer installations in more than 10 U.S. states and is expected to book 2012 revenue of $425 million.

Subject to customary closing conditions and regulatory approvals, the acquisition is set to close in the fourth quarter. Honeywell said it expects the acquisition to be accretive to 2013 earnings.

Honeywell has the ability to buy the remaining 30% in Thomas Russell at a price based on operating income performance, the companies said. 

Shares of Honeywell climbed about 2% to $60.93 on Monday morning.

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