Honeywell and Air Products jointly announced that Honeywell will acquire Air Products’ equipment brand and liquefied natural gas (LNG) processing technology for $1.81 billion. The acquisition is valued at approximately thirteen times the projected EBITDA for 2024.
The acquisition will enable Honeywell to offer clients a comprehensive solution for managing their energy transformation process. Currently, Honeywell provides pre-treatment solutions for LNG clients worldwide.
Air Products’ extensive portfolio includes coil-wound heat exchangers (CWHE) and related equipment, known for their compact size, reliability, safety, and high natural gas throughput, suitable for both onshore and offshore applications.
Vimal Kapur, Chairman and CEO of Honeywell, stated that natural gas is a crucial, lower-emission, and affordable transition fuel essential for meeting the dynamic global energy demands as the world shifts toward a renewable-based energy infrastructure.
Air Products’ Chairman, President, and CEO, Seifi Ghasemi, mentioned that divesting the LNG heat exchanger technology and equipment business aligns with their strategy to focus on growing their core industrial gas business and advancing clean hydrogen production to decarbonize industrial and heavy-duty transportation sectors.
Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment, added that integrating the acquired technologies and team will allow Honeywell UOP to offer a broad range of scalable solutions to help global customers transition to more sustainable and efficient energy practices.
As reported by manufacturingtodayindia.com, the acquisition is part of Honeywell’s strategy to focus on high-return investments that support future portfolio growth, particularly in the areas of automation, aviation, and energy transition. The deal, subject to customary closing conditions and financing approval, is expected to close by the end of the year and to be accretive to adjusted earnings per share in the first full year of ownership.
