Honeywell to acquire Air Products' LNG process technology and equipment business

Transaction Overview

• Announcement Details
• Honeywell to acquire Air Products' LNG process technology and equipment business
• Acquisition cost: $1.81 billion in an all-cash transaction
• Transaction represents approximately 13x estimated 2024 EBITDA
• Expected to close before the end of the calendar year, pending customary conditions and regulatory approvals
• Strategic Benefits
• Enhances Honeywell's energy transition capabilities
• Creates an end-to-end offering for energy transformation
• Integrates natural gas pre-treatment and liquefaction with Honeywell's digital automation technologies
• Expands Honeywell's portfolio in aftermarket services and software
• Financial Impact
• Expected to be immediately accretive to Honeywell's sales growth and segment margin
• Expected to be accretive to adjusted EPS in the first full year of ownership
• Fourth acquisition by Honeywell this year as part of its capital deployment strategy
• Air Products Focus
• Air Products to focus on its core industrial gas business and related technologies
• Emphasis on clean hydrogen projects for industrial and heavy-duty transportation sectors
• Market Insights
• LNG market has quadrupled over the past 20 years and is expected to double in the next two decades
• Demand driven by key end markets including power and data centers
• Leadership Statements
• Vimal Kapur, Chairman and CEO of Honeywell, highlights natural gas as a critical transition fuel
• Ken West, President and CEO of Honeywell's Energy and Sustainability Solutions, emphasizes the integration of the acquired team and technologies
• Seifi Ghasemi, Chairman, President and CEO of Air Products, reiterates the company's focus on core industrial gas business and clean hydrogen
• Business Details
• Air Products' LNG Business has approximately 475 employees
• Headquarters in Allentown, Pennsylvania
• 390,000-square-foot manufacturing facility in Port Manatee, Florida
• Company Profiles
• Honeywell
• Integrated operating company
• Aligned with megatrends: automation, future of aviation, energy transition
• Offers solutions through Aerospace Technologies, Industrial Automation, Building Automation, Energy and Sustainability Solutions
• Air Products
• World-leading industrial gases company
• Focus on sustainability with core industrial gases and clean hydrogen projects
• Fiscal 2023 sales of $12.6 billion, operating in 50 countries with a market capitalization over $50 billion