Press release
HONEYWELL TO ACQUIRE AIR PRODUCTS' LIQUEFIED NATURAL GAS PROCESS TECHNOLOGY AND EQUIPMENT BUSINESS TO EXPAND ENERGY TRANSITION SOLUTIONS AND SERVICES
Acquisition will build on Honeywell's energy transition capabilities by creating an end-to-end offering for customers worldwideThe combination will create new
About this update from Honeywell International Inc.
[{"type":"text","content":"Acquisition will build on Honeywell's energy transition capabilities by creating an end-to-end offering for customers worldwideThe combination will create new opportunities for diversified growth and innovation in aftermarket services and software Transaction is expected to be immediately accretive to Honeywell's sales growth and segment margin while also accretive to adjusted EPS in the first full year of ownershipAir Products to continue its focus on its industrial gas business and related technology and equipment and driving the energy transition through clean hydrogen at scaleCHARLOTTE, N.C., July 10, 2024 /PRNewswire/ -- Honeywell (Nasdaq: HON) and Air Products (NYSE: APD) jointly announced today that Honeywell has agreed to acquire Air Products' liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This represents approximately 13x estimated 2024 EBITDA.\n\nAs a result of the acquisition, Honeywell will be able to offer customers a comprehensive, top-tier solution for managing their energy transformation journey. The new holistic offering will encompass natural gas pre-treatment and state-of-the-art liquefaction, utilizing digital automation technologies unified under the Honeywell Forge and Experion platforms. This full-service solution will enable efficient, reliable and optimized management of natural gas assets, delivering unparalleled value and support.\nCurrently, Honeywell provides a pre-treatment solution serving LNG customers globally. Air Products' complementary LNG process technology and equipment business consists of a comprehensive portfolio, including in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment. CWHEs provide the highest throughput of natural gas in a single exchanger with a small footprint and robust, reliable and safe operations both onshore and offshore.\n\"While the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel that will help meet ever-increasing and dynamic global energy demands,\" said Vimal Kapur, Chairman and CEO of Honeywell.\n\"This highly complementary acquisition will further strengthen our energy transition portfolio, and Air Products' CWHE technology will immediately expand our i...