Honeywell Completes $1.81B Acquisition of Air Products' LNG Solutions Unit

Honeywell International Inc. has completed the purchase of Air Products and Chemicals Inc.’s liquefied natural gas (LNG) process technology and equipment business for $1.81 billion.

“Honeywell's full-service solution now provides customers a holistic offering that encompasses natural gas pre-treatment, state-of-the-art liquefaction and digital automation technologies unified under the Honeywell Forge and Experion platforms, as well as the addition of Air Products' coil-wound heat exchangers technology”, Charlotte, North Carolina-based Honeywell said in a statement.

Honeywell president and chief executive Ken West said, "The acquisition of Air Products' LNG process technology and equipment business strengthens Honeywell's energy transition portfolio and will enable our customers to manage their liquefied natural gas assets with greater efficiency and reliability”.

Announcing the agreement July 10, 2024, Honeywell said, citing a Deloitte report, “The LNG market has quadrupled over the past 20 years and is expected to double over the next two decades, driven by demand in key end markets including power and data centers”.

The all-cash agreement includes the transfer of about 475 employees of Allentown, Pennsylvania-based Air Products to Honeywell.

For Air Products, the divestment helps the company “focus on its two-pillar growth strategy to profitably grow its core industrial gases and related equipment businesses, and to deliver clean hydrogen at scale”, it said in a separate statement.

This is the fourth acquisition announced by Honeywell this year. “The company is focused on high-return acquisitions that will drive future growth across its portfolio, which is aligned with the three compelling megatrends of automation, the future of aviation and energy transition”, it said.

Last month Honeywell said it had consummated its takeover of CAES Systems Holdings LLC from Advent International for $1.9 billion in cash.

“CAES expands Honeywell's current defense and space portfolio with scalable offerings that enable Honeywell to both increase production and upgrade positions on critical platforms that include F-35, EA-18G, AMRAAM and GMLRS”, Honeywell said in a press release September 4. “Honeywell will also benefit from the ability to introduce its existing offerings on new platforms, such as the Navy Radar (SPY-6) and UAS and C-UAS technologies”.

Earlier Honeywell completed its $4.95 billion purchase of Global Access Solutions. “The acquisition brings differentiated software capabilities through the addition of three respected brands to Honeywell's portfolio: LenelS2, a leader in commercial and enterprise access solutions; Onity, which offers electronic locks, specifically hospitality access and mobile credentials; and Supra, which specializes in cloud-based electronic lockboxes and scheduling software”, Honeywell said in a press release June 3.

On March 27 Honeywell announced an agreement to acquire navigation technology provider Civitanavi Systems SPA in a EUR 200 million ($220.7 million) stock transaction.

“The acquisition will further strengthen Honeywell's capabilities to help its customers create autonomous operations in aircraft and other vehicles”, it said then.

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