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HONEYWELL TO ACQUIRE SUNDYNE TO EXPAND CRITICAL EQUIPMENT PORTFOLIO AND AFTERMARKET SERVICES
HONHoneywell(HON) Prnewswire·2025-03-04 12:00

Acquisition Overview - Honeywell has agreed to acquire Sundyne for 2.16billioninanall−cashtransaction,representingapproximately14.5x2024EBITDAonatax−adjustedbasis[1]−Sundynespecializesinhighly−engineeredpumpsandgascompressorsforprocessindustries,enhancingHoneywell′sEnergyandSustainabilitySolutions(ESS)businesssegment[1][7]StrategicBenefits−TheacquisitionwillunlockstrategicgrowthpotentialforHoneywellUOP′svaluechainsinrefining,petrochemicals,LNG,andcleanfuels[2]−HoneywellForge,anIoTplatform,willenablethedigitalizationofSundyne′sequipment,improvingreliabilityandpredictivemaintenance[2]−Theintegrationisexpectedtogeneratematerialrun−raterevenuesynergieswithHoneywellUOP′sprocesslicensingandmodularcapabilities[3][7]MarketPositionandGrowth−Sundyne′sestablishedcustomerrelationshipsandproductofferingswillstrengthenHoneywell′sbrandintheprocessindustryandexpanditsaftermarketservices[3][6]−ThecombinationwillenhanceHoneywell′send−to−endsolutionsinprocesstechnologiesandcriticalequipment,supportedbyautomationandcontrolsystems[7]FinancialImpact−TheacquisitionisexpectedtobeimmediatelyaccretivetoHoneywell′ssalesgrowth,segmentmargins,andadjustedEPSinthefirstfullyearofownership[6][10]−Honeywell′srecentstrategicactionsincludeapproximately2.16 billion in an all-cash transaction, representing approximately 14.5x 2024 EBITDA on a tax-adjusted basis [1] - Sundyne specializes in highly-engineered pumps and gas compressors for process industries, enhancing Honeywell's Energy and Sustainability Solutions (ESS) business segment [1][7] Strategic Benefits - The acquisition will unlock strategic growth potential for Honeywell UOP's value chains in refining, petrochemicals, LNG, and clean fuels [2] - Honeywell Forge, an IoT platform, will enable the digitalization of Sundyne's equipment, improving reliability and predictive maintenance [2] - The integration is expected to generate material run-rate revenue synergies with Honeywell UOP's process licensing and modular capabilities [3][7] Market Position and Growth - Sundyne's established customer relationships and product offerings will strengthen Honeywell's brand in the process industry and expand its aftermarket services [3][6] - The combination will enhance Honeywell's end-to-end solutions in process technologies and critical equipment, supported by automation and control systems [7] Financial Impact - The acquisition is expected to be immediately accretive to Honeywell's sales growth, segment margins, and adjusted EPS in the first full year of ownership [6][10] - Honeywell's recent strategic actions include approximately 9 billion of accretive acquisitions, indicating a strong focus on growth and portfolio transformation [9] Closing and Future Outlook - The acquisition is anticipated to close in Q2 2025, subject to customary closing conditions and regulatory approvals [10]