Honeywell announced Friday that it would sell its Personal Protective Equipment business to Protective Industrial Products, a portfolio company of Odyssey Investment Partners, for $1.325 billion in an all-cash transaction.
Honeywell says the transaction simplifies its portfolio and allows it to accelerate value creation in alignment with three compelling megatrends: automation, the future of aviation and energy transition.
Honeywell’s PPE business, part of the Industrial Automation business portfolio, is a global provider of PPE for industrial workers. This announcement follows the divestiture of Honeywell’s Lifestyle and Performance Footwear Business to Rocky Brands for $230 million in 2021 and completes Honeywell’s exit from PPE. Honeywell will retain its gas detection portfolio within the Industrial Automation segment.
The PPE business has approximately 5,000 employees. It operates 20 manufacturing sites and 17 distribution sites across the U.S., Mexico, Europe, North Africa, Asia Pacific and China.
“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,” says Honeywell CEO Vimal Kapur in a statement.
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 private equity investment firm that invests in industrial manufacturing, distribution, insurance, healthcare services, energy, packaging, safety products, supply chain management, aerospace, and defense industries.
Honeywell disclosed in its Q3 2024 earnings its intention to sell the PPE business. In addition, Honeywell announced a plan last month to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.