Honeywell International has reached an agreement to acquire Air Products and Chemicals’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion, a strategic move to bolster its energy transition portfolio. The transaction, an all-cash deal that requires no financing conditions, is slated to close by the end of the year, pending regulatory approvals. Honeywell is projecting that the acquisition will immediately enhance sales growth and segment margins, further boosting adjusted per-share earnings in the first year of ownership.
The acquired unit specializes in designing and manufacturing coil-wound heat exchangers, vital for ensuring high natural gas throughput. Based in Pennsylvania, the business employs around 475 people and operates a manufacturing facility in Florida. Honeywell’s Chief Executive, Vimal Kapur, emphasized that the acquisition would significantly complement and strengthen their energy transition portfolio, noting that Air Products’ coil-wound heat exchanger technology would expand Honeywell’s installed base and create new growth opportunities in aftermarket services and digitalization.
Meanwhile, Air Products and Chemicals’ CEO, Seifi Ghasemi, pointed out that divesting this segment allows the company to concentrate more on its core industrial gas business, related technology, and equipment, as well as on delivering clean hydrogen at scale. Ghasemi expressed confidence that the LNG business would thrive under Honeywell’s management and related portfolio of technologies.
This acquisition marks Honeywell’s fourth for the year. In June, Honeywell announced a $1.9 billion deal to acquire aerospace and defense technology company CAES Systems and completed the purchase of Carrier Global’s global access solutions business. Earlier in the year, Honeywell also indicated plans to acquire Civitanavi Systems for approximately 200 million euros ($216.5 million).
