Honeywell has completed its acquisition of Air Products' liquefied natural gas (LNG) process technology and equipment business.
The all-cash transaction, valued at $1.81bn, marks an expansion of Honeywell's offerings in the energy sector, enhancing its Energy and Sustainability Solutions business.
The acquisition brings approximately 475 skilled employees into Honeywell's fold, bolstering its capabilities in driving energy transition.
It also opens new avenues for growth and innovation, particularly in Honeywell's aftermarket services and software.
Signed in July, the deal enriches Honeywell's full-service solution with offerings including natural gas pre-treatment, advanced liquefaction and digital automation technologies.
These are integrated under the Honeywell Forge and Experion platforms, complemented by Air Products' coil-wound heat exchangers (CWHE) technology.
Air Products' LNG business boasts a comprehensive portfolio that spans the design and manufacture of CWHEs and related equipment.
The business is headquartered in Allentown, Pennsylvania, with a 390,000ft² manufacturing facility in Port Manatee, Florida, where it produces CWHEs of various sizes.
For Air Products, this divestiture aligns with its strategy to focus on its core industrial gas operations and the development of technologies and equipment for clean hydrogen production.
Honeywell energy and sustainability solutions segment president and CEO 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.
“With the integration of the LNG business, we will be able to provide a greater level of energy transition management from beginning to end through a full spectrum of scalable solutions.”
In April 2023, Honeywell agreed to buy Compressor Controls in an all-cash deal valued at $670m.
Compressor Controls is focused on turbomachinery control and optimisation solutions.
They encompass control hardware, software and services, serving various industries such as LNG, gas processing, refining and petrochemicals.
