Honeywell Acquires Air Products' LNG Process Business for $1.81B

Acquisition Overview - Honeywell International Inc. has completed the acquisition of Air Products and Chemicals, Inc.'s liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in cash, marking Honeywell's fourth acquisition of the year [1] - The LNG technology and equipment division of Air Products is located in Allentown, PA, and employs approximately 475 people [1] Acquisition Rationale - The acquisition aligns with Honeywell's strategy to enhance operations and expand market presence, particularly in the energy transition sector [2] - The integration of LNG process technology will enhance Honeywell's portfolio in coil-wound heat exchangers and related equipment, providing comprehensive solutions for energy transformation [2] - Honeywell's energy transition solutions will incorporate natural gas pre-treatment and advanced liquefaction, utilizing digital automation technologies from Honeywell Forge and Experion platforms [2] Other Notable Acquisitions - In September 2024, Honeywell acquired CAES Systems Holdings LLC to strengthen its defense technology offerings across various domains [3] - In June 2024, Honeywell acquired Carrier's Global Access Solutions business for $4.95 billion, enhancing its security products portfolio and building automation segment [3] - In March 2024, Honeywell announced plans to purchase Civitanavi Systems S.p.A. for approximately €200 million ($217 million) to boost its aerospace navigation solutions [3] Market Performance - Honeywell's shares have gained 13.2% over the past year, compared to the industry's growth of 21.3% [4] - Strength in the commercial aviation and building automation sectors is beneficial for Honeywell, particularly in the Aerospace segment driven by robust demand in the aviation aftermarket [4] Challenges - There is concern regarding weakness in the Industrial Automation segment due to lower project demand [5] - The demand for personal protective equipment within the sensing and safety technologies business has also weakened [5]