• The deal helps Honeywell further streamline and optimize its business, and resonates with the three major trends of automation, future aviation, and energy transformation
• It helps Honeywell continue to drive profitable growth and generate strong cash flow, creating significant long-term value for shareholders

CHARLOTTE, NC, November 25, 2024/PRNewswire/ -- Honeywell (NASDAQ: HON) recently announced that it has agreed to sell its personal safety protective equipment (PPE) business to Odyssey Investment Partners' portfolio company Protective Industrial Products, Inc. (“PIP”) at an all-cash transaction price of $1.325 billion. The deal will help Honeywell further streamline its business portfolio to accelerate value creation in the three major trends of automation, future aviation, and energy transformation.

As part of the Intelligent Industrial Automation (IA) business segment, Honeywell's PPE business is a global supplier of industrial personal safety protection equipment solutions, specializing in providing a complete and differentiated product portfolio to serve diverse, resilient, and growing customer and terminal markets.

The announcement comes after Honeywell sold its civilian and commercial footwear business to Rocky Brands for $0.23 billion in 2021, marking Honeywell's complete exit from the PPE market.

The PPE business currently has around 5,000 employees. Relying on a streamlined global manufacturing and distribution network, it can achieve cost-effective production, be closer to customers, and optimize delivery cycles. Currently, the business has 20 production sites and 17 distribution centers in the US, Mexico, Europe, North Africa, Asia Pacific, and China.

“Over the past five years, our PPE business has achieved remarkable results through operational improvement initiatives, rationalized layout, and rapid adaptation to global demand in the post-pandemic period. Through this transaction, the business will benefit from Odyssey Investment Partners' historic investment in the PPE sector and the expansion of similar businesses to expand new products, regions and end markets, thereby accelerating the growth trajectory.” Honeywell Chairman and CEO Vimal Kapur (Vimal Kapur) said.

Ko Wai-mao also added, “As we continue to streamline and optimize Honeywell's business portfolio, selling the PPE business will help us further strengthen our core business and resonate with the three major trends. “The deal announced today, combined with the strategic acquisitions we have implemented over the past year, will help us continue to drive profitable growth, generate strong cash flow, and create significant long-term value for our shareholders.”

PIP is a global supplier and manufacturer of PPE products. Odyssey Investment Partners is a leading private equity investment company. Since its establishment 25 years ago, it has been committed to transforming industrial and commercial service companies into more efficient, more diversified companies with strong growth models.

“As one of the leading companies in the field of personal protective equipment, we have a talented team and numerous awards for innovation, which has enabled us to continue to achieve long-term success and provide our loyal customers with a complete range of safety solutions from head to toe.” Mike Garceau, president and CEO of Honeywell's PPE business, said, “We look forward to joining the PIP family and working together to create a better future and create value for customers around the world.”

The transaction follows Honeywell's intention to sell the PPE business as recently disclosed in its financial report for the third quarter of 2024. The move is also in line with Honeywell's strategy of divesting non-core business lines to optimize the business portfolio while pursuing high-return acquisitions to drive future growth in line with the three major trends. The sale of the PPE business is based on Honeywell's completion of four strategic acquisitions in the past 12 months and is part of Honeywell's rigorous capital deployment strategy. Additionally, Honeywell announced last month that it plans to split its high-performance materials business into an independent US listed company, which is expected to be completed by the end of 2025 or the beginning of 2026.

The transaction for PPE business is expected to be completed in the first half of 2025 and is subject to customary closing conditions.

About Honeywell

Honeywell is a Fortune 500 high-tech enterprise. The company's business revolves around the three major development trends of automation, future aviation, and energy transformation, and relies on the Honeywell accelerator operating system and Honeywell Internet platform to provide a wide range of technologies and services to various industries around the world. As a trusted partner, Honeywell helps customers solve difficult and complex global challenges through Aerospace Technology Group, Intelligent Building Technology Group, and Energy and Sustainable Technology Group to make the world smarter, safer, more reliable and more sustainable. In China, Honeywell implements the “East Serves the East” strategy to drive business development through local innovation. Currently, all of Honeywell's business groups have settled in China. For more company information, visit Honeywell's China website, or follow Honeywell's official WeChat and video accounts.