Time: 2024-07-10
Honeywell International , Inc. and Air Products announced a significant acquisition deal . Honeywell will acquire Air Products ' liquefied natural gas process technology and equipment business for .81 billion in cash . This move is expected to enhance Honeywell 's energy transition capabilities by providing a comprehensive solution to customers worldwide . The transaction is projected to be immediately beneficial to Honeywell 's sales growth and segment margin . Additionally , it is expected to increase adjusted EPS within the first year of ownership . This acquisition will enable Honeywell to offer an end - to - end solution for managing the energy transformation journey , encompassing natural gas pre - treatment and liquefaction technologies integrated under the Honeywell Forge and Experion platforms.
The acquisition will also expand Honeywell 's installed base and create new opportunities for growth in aftermarket services and digitalization through the Honeywell Forge platform . Air Products ' LNG business , which includes the design and manufacturing of coil - wound heat exchangers ( CWHE ) , will complement Honeywell 's existing offerings in the LNG sector . CWHEs are known for their high throughput , small footprint , and reliable operations both onshore and offshore.
Vimal Kapur , Chairman and CEO of Honeywell , emphasized the importance of natural gas as a transition fuel to meet global energy demands . The acquisition of Air Products ' LNG business will further strengthen Honeywell 's energy transition portfolio and expand its reach in the LNG market . Seifi Ghasemi , Chairman , President , and CEO of Air Products , highlighted the company 's focus on its industrial gas business and clean hydrogen initiatives . The divestment of the LNG business aligns with Air Products ' strategy to grow its core operations and deliver clean hydrogen at scale to decarbonize various sectors.
The LNG market has shown significant growth over the past few decades and is expected to double in the next 20 years . This growth is being primarily driven by demand in key sectors such as power generation and data centers . The acquisition of Air Products ' LNG business will enable Honeywell to offer scalable solutions and services to navigate the transition towards sustainable and efficient energy practices . This strategic move is part of Honeywell 's disciplined capital deployment strategy , focusing on high - return acquisitions that align with key megatrends in automation , aviation , and energy transition.
In conclusion , the acquisition of Air Products ' LNG business by Honeywell marks a significant step towards strengthening Honeywell 's position in the energy transition market . The deal is expected to bring new growth opportunities , enhance product offerings , and drive innovation in the LNG sector . Honeywell 's commitment to providing comprehensive solutions for managing the energy transformation journey underscores its dedication to sustainability and efficiency in the global energy landscape.
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