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Saturday, July 13, 2024

Honeywell to buy liquid natural gas product biz for $1.8 billion

Charlotte’s Honeywell has agreed to buy a liquid natural gas technology and equipment business for $1.8 billion, expanding its presence in that market.

The business is being sold by Air Products, a public company based in Allentown, Pennsylvania.

Currently, Honeywell provides a pre-treatment solution serving liquid natural gas customers. Air Products’ process technology and equipment business is much broader,  including in-house design and manufacturing of coil-wound heat exchangers and related equipment.

“While the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel that will help meet ever-increasing and dynamic global energy demands,” said Honeywell CEO Vimal Kapur in a statement.

Air Products’ liquid natural gas business has approximately 475 employees with headquarters in Allentown, Pennsylvania, and a 390,000-square-foot manufacturing plant in Port Manatee, Florida.

The liquid natural gas market has quadrupled over the past 20 years and is expected to double over the next two decades, driven by demand in markets such as power and data centers, according to industry research.

This is the fourth acquisition Honeywell has announced this year as part of its capital deployment strategy. Last month, the company agreed agreed to acquire defense technology company CAES Systems Holdings from private equity firm Advent International for approximately $1.9 billion in an all-cash transaction.

And in June, the company completed its acquisition of Carrier Global’s Global Access Solutions business for $4.95 billion. Honeywell is focusing its future on what it believes are three major trends — automation, the future of aviation and the energy transition.

The current acquisition is expected to close by the end of the year and be accretive to Honeywell’s earnings.

Honeywell’s stock closed Wednesday at $214.49, up $3.89, or 1.85%. It’s near its 52-week high of $218.36.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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