Honeywell Sells Its PPE Business To Protective Industrial Products For $1.3B: Retail’s Neutral
Synopsis
The business has approximately 5,000 employees and currently operates 20 manufacturing sites.
Shares of Honeywell International Inc ($HON) were in the spotlight on Friday morning after Protective Industrial Products, Inc. (PIP) announced it is set to acquire the Personal Protective Equipment Business (PPE Business) of Honeywell.
PIP is a portfolio company of Odyssey Investment Partners.
The all-cash transaction is valued at $1.325 billion and will enable Honeywell to further simplify its portfolio in order to accelerate value creation in alignment with “three compelling megatrends: automation, the future of aviation and energy transition.”
The PPE business has approximately 5,000 employees and currently operates 20 manufacturing sites and 17 distribution sites across the U.S., Mexico, Europe, North Africa, Asia Pacific and China.
The transaction comes against the backdrop of Honeywell's recent disclosure about its intention to sell the PPE business and aligns with its intention to optimize its portfolio by taking action to divest from non-core lines of business.
Earlier, Honeywell had divested its Lifestyle and Performance Footwear Business to Rocky Brands for $230 million in 2021. The current transaction completes Honeywell's exit from PPE. Honeywell will retain its gas detection portfolio within the Industrial Automation segment.
PIP CEO Curt Holtz said the acquired brands and capabilities coupled with the new employees is highly complementary to the firm’s business. “The combination of our expanded portfolio of brands and enhanced geographic reach will enable us to offer more growth opportunities for our valued customers around the world,” he said.
Meanwhile, Michael Garceau, President of the PPE Business, will continue in that role, reporting to Holtz.
The transaction is expected to be completed in the first half of 2025.
Following the announcement, retail sentiment on Stocktwits continued to trend in the ‘neutral’ territory (46/100).
Shares of Honeywell have gained over 8% since the beginning of the year.
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