Honeywell has announced its acquisition of Air Products’ liquefied natural gas (LNG) processing technology and equipment brand for $1.81 billion. This strategic move, valued at approximately thirteen times the projected EBITDA for 2024, will enable Honeywell to offer comprehensive solutions for managing energy transformation processes.
With this acquisition, Honeywell will enhance its existing LNG pre-treatment solutions by incorporating Air Products’ extensive portfolio, which includes coil-wound heat exchangers (CWHE) and related equipment. Known for their compact size, reliability, safety, and high natural gas throughput, these exchangers are suitable for both onshore and offshore applications.
Vimal Kapur, Chairman and CEO of Honeywell, emphasized the importance of natural gas as a critical, lower-emission, and affordable transition fuel essential for meeting global energy demands during the shift toward renewable energy infrastructure.
The Chairman, President, and CEO of Air Products, Seifi Ghasemi, highlighted that divesting the LNG heat exchanger technology and equipment business aligns with Air Products’ strategy to focus on its core industrial gas business and advancing clean hydrogen production. This move supports their goal to decarbonize industrial and heavy-duty transportation sectors.
Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment, noted that integrating the acquired technologies and team will allow Honeywell UOP to offer a broad range of scalable solutions to help global customers transition to more sustainable and efficient energy practices.
This acquisition is part of Honeywell’s broader strategy to focus on high-return investments that support future portfolio growth, particularly in automation, aviation, and energy transition. The deal is expected to close by the end of the year, subject to customary closing conditions and financing approval. It is anticipated to be accretive to adjusted earnings per share in the first full year of ownership.
Honeywell’s acquisition of Air Products’ LNG technology and equipment represents a significant step in expanding its capabilities and offerings in the energy sector, reinforcing its commitment to sustainability and innovation.