Honeywell International Inc. and Air Products & Chemicals Inc. have entered an agreement for the former to acquire Air Products\u2019 liquefied-natural-gas-processing technology and equipment for $1.81 billion in an all-cash deal.<\/p>\n
Honeywell\u2019s stock HON -0.49%\u00a0dipped 0.3% premarket on the news, while Air Products APD, -0.08% \u00a0shares were up 2%.<\/p>\n
The price is equal to about 13 times the estimated 2024 earnings before interest, taxes, depreciation and amortization (Ebitda) the companies said in a joint statement.<\/p>\n
The deal will allow Honeywell \u201cto offer customers a comprehensive, top-tier solution for managing their energy transformation journey<\/em>,\u201d their statement read.<\/p>\n Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. The deal will add a portfolio that includes in-house design and manufacturing of coil-wound heat exchangers and related equipment.<\/p>\n \u201cWhile 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,\u201d Honeywell Chief Executive Vimal Kapur said in prepared remarks.<\/p>\n The deal is expected to boost adjusted per-share earnings in the first full year after closing and is expected to close before year-end. It\u2019s not subject to any financing conditions.<\/p>\n The Air Products\u2019 LNG business has about 475 employees and is based in Allentown, Penn. The company has a 390,000 sq. ft. facility in Port Manatee, Fla.<\/p>\n The deal is the fourth by Honeywell this year as the company moves to drive growth while aligning with three megatrends of automation, the future of aviation and energy transition.<\/p>\n In June, the aerospace and defence company announced plans to acquire CAES Systems from private-equity firm Advent International, for about $2 billion. CAES, headquartered in Arlington, Va., designs, develops and tests electronics ranging from antenna systems to communication networks for aerospace and defence companies.<\/p>\n In March, Honeywell said it would acquire Italy\u2019s Civitanavi Systems, an aircraft-components manufacturer and developer.<\/p>\n In June, the company announced the closing of its $4.95 billion acquisition of Carrier Global Corporation\u2019s global access solutions business.<\/p>\n Honeywell\u2019s stock is up 0.4% in the year to date, while the S&P 500 SPX has gained 17%.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" Honeywell International Inc. and Air Products & Chemicals Inc. have entered an agreement for the former to acquire Air Products\u2019 liquefied-natural-gas-processing technology and equipment for $1.81 billion in an all-cash deal. Honeywell\u2019s stock HON -0.49%\u00a0dipped 0.3% premarket on the news, while Air Products APD, -0.08% \u00a0shares were up 2%. The price is equal to about […]<\/p>\n","protected":false},"author":13,"featured_media":38345,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[172],"tags":[],"class_list":["post-38344","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/38344","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=38344"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/38344\/revisions"}],"predecessor-version":[{"id":38346,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/38344\/revisions\/38346"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/38345"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=38344"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=38344"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=38344"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}