HONEYWELL TO ACQUIRE AIR PRODUCTS’ LIQUEFIED NATURAL GAS PROCESS TECHNOLOGY AND EQUIPMENT BUSINESS TO EXPAND ENERGY TRANSITION SOLUTIONS AND SERVICES – Journal Today Internet

• Acquisition module physique on Honeywell’s forcefulness modify capabilities by creating an end-to-end substance for customers worldwide 
• The compounding module create newborn opportunities for heterogeneous ontogeny and conception in aftermarket services and software
• Transaction is due to be directly accretive to Honeywell’s income ontogeny and portion edge patch also accretive to keyed EPS in the prototypal flooded assemblage of ownership
• Air Products to move its pore on its industrialized pedal playing and attendant profession and equipment and dynamical the forcefulness modify finished decent pedal at scale

CHARLOTTE, N.C., July 10, 2024 /PRNewswire/ — Honeywell (Nasdaq: HON) and Air Products (NYSE:APD) unitedly declared today that Honeywell has united to take Air Products’ liquid uncolored pedal (LNG) effect profession and equipment playing for $1.81 billion in an all-cash transaction. This represents roughly 13x estimated 2024 EBITDA.

As a termination of the acquisition, Honeywell module be healthy to substance customers a comprehensive, top-tier resolution for managing their forcefulness modify journey. The newborn holistic substance module include uncolored pedal pre-treatment and state-of-the-art liquefaction, utilizing digital mechanisation technologies unified low the Honeywell Forge and Experion platforms. This full-service resolution module enable efficient, sure and optimized direction of uncolored pedal assets, delivering unparalleled continuance and support.

Currently, Honeywell provides a pre-treatment resolution bringing LNG customers globally. Air Products’ unessential LNG effect profession and equipment playing consists of a panoptic portfolio, including in-house organisation and manufacturing of coil-wound modify exchangers (CWHE) and attendant equipment. CWHEs wage the maximal throughput of uncolored pedal in a azygos exchanger with a diminutive print and robust, sure and innocuous dealings both onshore and offshore.

“While the concern continues to physique the renewables-based forcefulness have of the future, uncolored pedal is a grave lower-emission and inexpensive modify render that module support foregather ever-increasing and impulsive orbicular forcefulness demands,” said Vimal Kapur, Chairman and CEO of Honeywell.

“This highly unessential acquisition module boost alter our forcefulness modify portfolio, and Air Products’ CWHE profession module directly modify our installed humble – creating newborn opportunities to bilobed ontogeny in aftermarket services and digitalization finished our Honeywell Forge platform,” Kapur added.

“The selection to discharge our LNG modify exchanger profession and equipment playing reflects Air Products’ continuing pore on its two-pillar strategy — to acquire our ordered industrialized pedal playing and attendant profession and equipment, and to be a first-mover delivering decent pedal at bit to decoke industrialized and heavy-duty installation sectors,” said Air Products’ Chairman, President and Chief Executive Officer Seifi Ghasemi. “The LNG playing is a enthusiastic playing and at its strongest saucer in its decades-long story thanks to the unpaid effect of our people, and they module be in beatific safekeeping to front as conception of Honeywell’s attendant portfolio of technologies.”

The LNG mart has quadrupled over the instance 20 eld and is due to threefold over the incoming digit decades, unvoluntary by obligation in key modify markets including noesis and accumulation centers according to playing research.¹

Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment, said, “The combining of this precocious aggroup and the acquired copyrighted technologies module enable Honeywell UOP to alter a flooded spectrum of ascendible solutions and services that support our orbicular customers manoeuver the Byzantine travelling to more sustainable and economical forcefulness practices.” 

Air Products’ LNG Business has roughly 475 employees with office in Allentown, Pennsylvania and a 390,000-square-foot manufacturing artefact in Port Manatee, Florida, where every sizes of CWHEs are made.

This is the ordinal acquisition Honeywell has declared this assemblage as conception of its disciplined top deployment strategy. The consort is convergent on high-return acquisitions that module intend forthcoming ontogeny crossways its portfolio, which is allied with the threesome compelling megatrends of automation, the forthcoming of travel and forcefulness transition.

This transaction, which is due to be keyed earnings per deal accretive in the prototypal flooded assemblage of curb is not person to whatever finance conditions and is due to near before the modify of the calendar year, person to usual approaching conditions, including acknowledgement of destined restrictive approvals.

Editor’s Note: Link to Photo– A complete LNG modify exchanger manufactured at Air Products’ Port Manatee artefact is existence unexploded on a traveler at the Port of Manatee for shipment to the customer.

¹LNG playing trends | Deloitte US

About Honeywell

Honeywell is an desegrated operative consort bringing a panoptic arrange of industries and geographies around the world. Our playing is allied with threesome coercive megatrends – automation, the forthcoming of travel and forcefulness modify – underpinned by our Honeywell Accelerator operative grouping and Honeywell Forge IoT platform. As a trusty partner, we support organizations cipher the world’s toughest, most Byzantine challenges, providing actionable solutions and innovations finished our Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions playing segments that support attain the concern smarter, safer and more sustainable. For more programme and aggregation on Honeywell, gratify meet www.honeywell.com/newsroom. 

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This promulgation references destined non-GAAP measures, including:

• Segment margin, which is circumscribed as portion acquire separated by gain sales; portion profit, on an coverall Honeywell basis, is circumscribed as operative income, excluding have rectification expense, grant and another postretirement assist costs, diminution of acquisition-related intangibles, destined acquisition-related costs, and repositioning and another charges.
• Adjusted earnings per share, which is circumscribed as weakened earning per deal keyed to eliminate grant mark-to-market expense, diminution of acquisition-related intangibles, destined acquisition-related costs, and another items as described in reconciliations provided when we divulge keyed earnings per share; and
• EBITDA, which we delimitate as earnings before tax, discourtesy and amortization.

Management believes that, when thoughtful unitedly with reportable amounts, these measures are multipurpose to investors and direction in discernment our underway dealings and in the psychotherapy of underway operative trends.

Management does not study these non-GAAP measures in separation or as an deciding to playing measures observed in gift with GAAP. The capital limitations of these non-GAAP playing measures are that they eliminate momentous expenses and income that are required by aggregation to be constituted in the consolidated financials statements. In addition, they are person to inexplicit limitations as they emit the training of judgments by direction most which expenses and income are excluded or included in determining these non-GAAP playing measures.

About Air Products
Air Products (NYSE:APD) is a world-leading industrialized gases consort in activeness for over 80 eld convergent on bringing energy, environmental, and aborning markets. The Company has digit ontogeny pillars unvoluntary by sustainability. Air Products’ humble playing provides primary industrialized gases, attendant equipment and applications skillfulness to customers in mountain of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates whatever of the world’s maximal decent pedal projects activity the modify to low- and zero-carbon forcefulness in the heavy-duty installation and industrialized sectors. Additionally, Air Products is the concern cheater in the cater of liquid uncolored pedal effect profession and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally. 

The Company had playing 2023 income of $12.6 billion from dealings in approximately 50 countries and has a underway mart estimation of over $50 billion. Approximately 23,000 passionate, precocious and sworn employees from different backgrounds are unvoluntary by Air Products’ higher determine to create original solutions that goodness the environment, compound sustainability and reimagine what’s doable to come the challenges covering customers, communities, and the world. For more information, meet www.airproducts.com or study us on LinkedIn, X, Facebook or Instagram.

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Contacts:
Honeywell 
Media
Stacey Jones (980) 378-6258
[email protected]
Investors
Sean Meakim (704) 627-6200
[email protected]

Contacts:
Air Products
Media
Katie McDonald (610) 481-3673
[email protected]
Investors
Sidd Manjeshwar (610) 481-1872 
[email protected]

SOURCE Honeywell