Honeywell to Pay $1.81B for Air Products’ LNG Business 

Honeywell International Inc. announced its fourth deal of the year with the acquisition of the LNG process technology and equipment business of Air Products & Chemicals Inc. for $1.81 billion in an all-cash transaction, representing approximately 13x estimated 2024 EBITDA. 

Air Products said the sale will increase its focus on its two-pillar strategy: to grow its industrial gas business, including related technology and equipment, and to be a first mover in clean hydrogen. 

“While the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel that will help meet ever-increasing and dynamic global energy demands,” said Vimal Kapur, chairman and CEO of Honeywell. 

Air Products’ LNG business has approximately 475 employees with headquarters in Allentown, PA and a 390,000-square-foot manufacturing facility in Port Manatee, FL, where all sizes of coil-wound heat exchangers (CWHEs) are made. 

The transaction is expected to increase Honeywell’s adjusted per-share earnings in the first full year following the close, which is scheduled to occur by the end of the year. It is not subject to any financing conditions. 

In June, Honeywell reached a roughly $1.9 billion all-cash deal to buy aerospace and defense technology company CAES Systems from private equity firm Advent International.