Honeywell has announced the acquisition of Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in cash. This deal marks Honeywell’s fourth acquisition this year, highlighting its commitment to the energy transition. The acquisition will expand Honeywell’s existing LNG pretreatment business, adding technologies like heat exchangers and cryogenic equipment. This strategic move comes amidst a surge in demand for LNG, driven by its increasing use in power generation and data centers. Air Products’ technology is used both onshore and offshore, offering Honeywell further expansion opportunities. The company’s coil-wound heat exchangers are known for their efficiency and space-saving design, making them attractive for various applications.
The deal is expected to be accretive to Honeywell’s earnings, potentially adding 1% to adjusted earnings per share in 2025. Honeywell plans to leverage its Forge platform to offer digitalization and aftermarket services, further enhancing growth opportunities. This acquisition aligns with Honeywell CEO Vimal Kapur’s vision for the company’s future, focusing on automation, aviation, and energy transition. This move strengthens Honeywell’s position in the growing energy transition market, opening up new avenues for growth and profitability.