HONEYWELL TO SELL PERSONAL PROTECTIVE EQUIPMENT BUSINESS TO PROTECTIVE INDUSTRIAL PRODUCTS
Honeywell (NASDAQ: HON) has agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products for $1.325 billion in cash. The PPE business, with approximately 5,000 employees, operates 20 manufacturing sites and 17 distribution sites globally. This sale follows Honeywell's earlier divestiture of its Footwear Business for $230 million in 2021 and aligns with the company's strategy to focus on three megatrends: automation, aviation future, and energy transition. The transaction is expected to close in first half of 2025, subject to customary conditions.
Honeywell (NASDAQ: HON) ha concordato di vendere la propria attività di Equipaggiamento di Protezione Personale (PPE) a Protective Industrial Products per 1,325 miliardi di dollari in contante. L'attività PPE, con circa 5.000 dipendenti, gestisce 20 siti di produzione e 17 siti di distribuzione a livello globale. Questa vendita segue la precedente dismissione da parte di Honeywell della sua attività calzaturiera per 230 milioni di dollari nel 2021 e si allinea con la strategia dell'azienda di concentrarsi su tre megatrend: automazione, futuro dell'aviazione e transizione energetica. Si prevede che la transazione si chiuda nella prima metà del 2025, soggetta a condizioni consuete.
Honeywell (NASDAQ: HON) ha acordado vender su negocio de Equipo de Protección Personal (PPE) a Protective Industrial Products por 1.325 millones de dólares en efectivo. El negocio de PPE, que emplea a aproximadamente 5,000 personas, opera 20 sitios de fabricación y 17 sitios de distribución a nivel mundial. Esta venta sigue a la desinversión anterior de Honeywell en su negocio de calzado por 230 millones de dólares en 2021 y se alinea con la estrategia de la compañía de centrarse en tres megatendencias: automatización, futuro de la aviación y transición energética. Se espera que la transacción se cierre en la primera mitad de 2025, sujeta a condiciones habituales.
하니웰 (NASDAQ: HON)은 개인 보호 장비(PPE) 사업을 Protective Industrial Products에 13억 2500만 달러에 현금으로 판매하기로 합의했습니다. PPE 사업은 약 5,000명의 직원을 두고 있으며, 전 세계에 20개의 제조 시설과 17개의 유통 센터를 운영하고 있습니다. 이 판매는 2021년에 하니웰이 2억 3천만 달러에 신발 사업을 매각한 것에 이어지는 것이며, 회사의 전략이 자동화, 항공의 미래, 에너지 전환이라는 세 가지 메가 트렌드에 집중하는 것과 일치합니다. 거래는 2025년 상반기에 마무리될 것으로 예상되며, 일반적인 조건에 따릅니다.
Honeywell (NASDAQ: HON) a convenu de vendre son activité d'Équipement de Protection Individuelle (EPI) à Protective Industrial Products pour 1,325 milliard de dollars en numéraire. L'activité EPI, qui compte environ 5 000 employés, exploite 20 sites de fabrication et 17 sites de distribution à l'échelle mondiale. Cette vente fait suite à la cession antérieure de Honeywell de son activité de chaussures pour 230 millions de dollars en 2021 et s'inscrit dans la stratégie de l'entreprise de se concentrer sur trois mégatrends : l'automatisation, l'avenir de l'aviation et la transition énergétique. La transaction devrait se conclure dans la première moitié de 2025, sous réserve de conditions habituelles.
Honeywell (NASDAQ: HON) hat sich entschieden, sein Geschäft mit persönlicher Schutzausrüstung (PPE) für 1,325 Milliarden Dollar in bar an Protective Industrial Products zu verkaufen. Das PPE-Geschäft beschäftigt etwa 5.000 Mitarbeiter und betreibt weltweit 20 Produktionsstätten und 17 Vertriebsstandorte. Dieser Verkauf folgt auf die frühere Veräußertung des Schuhgeschäfts von Honeywell für 230 Millionen Dollar im Jahr 2021 und steht im Einklang mit der Strategie des Unternehmens, sich auf drei Megatrends zu konzentrieren: Automatisierung, Zukunft der Luftfahrt und Energiewende. Der Abschluss der Transaktion wird im ersten Halbjahr 2025 erwartet, vorbehaltlich üblicher Bedingungen.
- Sale value of $1.325 billion in all-cash transaction
- Strategic portfolio optimization to focus on core megatrends
- Completed four strategic acquisitions in past 12 months
- PPE business has strong operational improvements and global presence
- Divestment of a significant business unit with 5,000 employees
- Loss of revenue stream from PPE segment
Insights
The
The deal aligns with Honeywell's strategic pivot toward three megatrends: automation, aviation future and energy transition. This focus, coupled with four recent strategic acquisitions and the planned Advanced Materials spin-off, indicates a comprehensive portfolio transformation. The all-cash nature of the transaction will strengthen Honeywell's balance sheet and provide additional capital for strategic investments in higher-growth areas.
The divestiture of the PPE business, with its 5,000 employees and global footprint of 20 manufacturing and 17 distribution sites, represents a significant operational restructuring. The sale to PIP, backed by Odyssey Investment Partners' expertise in scaling PPE businesses, suggests strong potential for the divested unit's future growth. The timing is strategic, capitalizing on the business's post-pandemic operational improvements and market position.
This move should enhance Honeywell's operational efficiency and profit margins by removing a non-core business unit. The transaction's expected completion in H1 2025 provides sufficient time for a smooth transition while maintaining business continuity.
- Sale enables Honeywell to further simplify and optimize its businesses in alignment with three powerful megatrends: automation, the future of aviation and energy transition
- Positions Honeywell to continue to deliver profitable growth and strong cash generation, creating compelling long-term value for shareowners.
Honeywell's PPE business, part of the Industrial Automation (IA) business portfolio, is a global provider of PPE for industrial workers, offering a comprehensive and differentiated product portfolio that serves a diverse and resilient set of growing customers and end markets.
This announcement follows the divestiture of Honeywell's Lifestyle and Performance Footwear Business to Rocky Brands for
The PPE business has approximately 5,000 employees and a streamlined global manufacturing and distribution footprint that allows for cost-effective production, close proximity to customers and optimized lead times. It currently operates 20 manufacturing sites and 17 distribution sites across the
"Over the last five years, our PPE business has experienced significant wins as a result of its operational improvement initiatives, footprint rationalization and quick adaptation to global needs following the pandemic. Now with this transaction, the business will be positioned to accelerate its growth trajectory as it benefits from Odyssey's historic investing in the PPE sector and scaling similar businesses to expand into new products, geographies and end markets," said Vimal Kapur, Chairman and CEO of Honeywell.
Kapur added, "As we continue to simplify and optimize Honeywell's portfolio, the sale of the PPE business will enable us to further strengthen our core business in alignment with our three compelling megatrends. The combination of today's announcement, with the strategic acquisitions we have made over the past year, positions us to continue to drive profitable growth and strong cash generation while creating compelling long-term value for our shareowners."
PIP is a global supplier and manufacturer of PPE products. Odyssey Investment Partners is a leading private equity investment firm with a 25-year history of transforming industrial and business services companies into more efficient and diversified businesses with strong growth profiles.
"As a leader in personal protective equipment, we have a uniquely talented team and a rich legacy of award-winning innovations that position us for continued long-term success delivering a full suite of head-to-toe safety solutions to our longstanding customer base," said Honeywell Personal Protective Equipment President and CEO Mike Garceau. "We look forward to joining the PIP family and continuing to build a strong future for our employees and delivering value for our customers across the globe."
The transaction follows Honeywell's recent disclosure in its Q3 2024 earnings of its intention to sell the PPE business. It also aligns with Honeywell's commitment to optimize its portfolio by taking action to divest from non-core lines of business while pursuing high-return acquisitions that will drive future growth in alignment with its three powerful megatrends. The sale of the PPE business builds on Honeywell's completion of four strategic acquisitions over the past 12 months as part of its disciplined capital deployment strategy. In addition, Honeywell announced a plan last month to spin off its Advanced Materials business into an independent,
The transaction, which is expected to be completed in the first half of 2025, is subject to customary closing conditions.
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends – automation, the future of aviation and energy transition – underpinned by our Honeywell Accelerator operating system and Honeywell Forge IoT platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations through our Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments that help make the world smarter, safer and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.
We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control. They are not guarantees of future performance, and actual results, developments and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as lower GDP growth or recession, capital markets volatility, inflation, and certain regional conflicts, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.
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