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Tue. Jul 16th, 2024

Honeywell to buy gas technology company Air Products for $1.8 billion

By meerna Jul11,2024
Honeywell to buy gas technology company Air Products for .8 billion

Honeywell to acquire Air Products’ technology and equipment business to produce liquefied natural gas in $1.8 billion deal

Courtesy of Honeywell

Honeywell is buying Air Products’ liquefied natural gas system for $1.8 billion in an all-cash deal, the companies said Wednesday.

According to a joint press release, the Charlotte-based electronics giant will be able to expand the energy transition for its customers after the purchase. Honeywell will acquire Air Products’ technology and equipment business for producing liquefied natural gas, a process that involves cooling gas to a liquid state.

This is the fourth transaction Honeywell has announced this year as part of its capital development strategy. Three of those deals were for more than $1 billion.

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Honeywell currently supports a preprocessing solution for liquefied natural gas customers. The company will add in-house design and manufacturing of coil-wound heat exchangers and related equipment to Air Products, according to a news release.

According to the company, Honeywell Forge and Experion platforms, pre-processing and liquefaction using digital automation technology, will be unified.

Vimal Kapur, Honeywell’s chairman and CEO, said in a statement that natural gas is a critical, low-emissions fuel that will help meet the world’s growing energy needs. He also said the purchase will strengthen the company’s energy transformation portfolio.

Air Products is selling its business to Honeywell to grow its core industrial gases business, related technology, equipment and energy transition efforts, according to its CEO. Seifi Ghasemi.

The market for liquefied natural gas has quadrupled in the past 20 years and is expected to double in the next two decades, according to Honeywell and Air Products. That’s driven by demand from power and data centers.

Honeywell to acquire Air Products’ technology and equipment business to produce liquefied natural gas in $1.8 billion deal Scott Ritchie Courtesy of Honeywell

Honeywell is growing and expanding

Honeywell’s latest acquisition aligns with automation trends, the future of aviation and the energy transformation, the company says.

In March, Honeywell acquired aerospace and defense equipment maker Civitanavi Systems for $214.3 million. Then, in early June, it finalized plans to buy Carrier’s Global Access Solutions cybersecurity business for about $5 billion.

In late June, Honeywell announced it had acquired CAES Systems Holdings LLC from private equity firm Advent International in an all-cash transaction worth $1.9 billion.

More about Honeywell

Honeywell produces aerospace products, building technologies, high-performance materials and other technologies. It also provides safety and productivity services.

The company employs 95,000 people worldwide, including 33,000 in the U.S. and 1,300 in Charlotte. Honeywell moved its global headquarters to Charlotte in 2018.

About Air Products

Aviation products liquefied natural gas business employs 475 people and is headquartered in Allentown, Pa. and a 390,000-square-foot manufacturing facility in Port Manatee, Florida.

Founded more than 80 years ago, Air Products serves energy, environmental and emerging markets. Air Products employs 23,000 people in 50 countries.

Chase Jordan's profile picture

Chase Jordan is a business reporter for The Charlotte Observer with nearly a decade of experience covering news in North Carolina. Before joining The Observer, he was a growth and development reporter for the Wilmington StarNews. A native of Kansas City, he is a graduate of Bethune-Cookman University.

By meerna

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