Honeywell Worldwide Inc. HON shares are buying and selling increased on Friday. The corporate has agreed to promote its Private Protecting Tools (PPE) enterprise to Protecting Industrial Merchandise, Inc. (PIP) for $1.325 billion in an all-cash deal.
This transfer aligns with Honeywell’s technique to streamline its portfolio, specializing in core companies and pursuing high-return acquisitions that help its three key megatrends: automation, the way forward for aviation, and vitality transition.
This sale follows Honeywell’s 2021 divestiture of its Life-style and Efficiency Footwear Enterprise to Rocky Manufacturers for $230 million, marking the corporate’s exit from the PPE sector.
Nevertheless, Honeywell will retain its fuel detection portfolio inside the Industrial Automation section.
The sale of the PPE enterprise is predicted to shut within the first half of 2025, pending customary situations.
Vimal Kapur, Chairman and CEO of Honeywell stated, ”Now with this transaction, the enterprise might be positioned to speed up its progress trajectory because it advantages from Odyssey’s historic investing within the PPE sector and scaling related companies to develop into new merchandise, geographies and finish markets.”
“As we proceed to simplify and optimize Honeywell’s portfolio, the sale of the PPE enterprise will allow us to additional strengthen our core enterprise in alignment with our three compelling megatrends.”
”The mixture of in the present day’s announcement, with the strategic acquisitions we have now revamped the previous yr, positions us to proceed to drive worthwhile progress and powerful money technology whereas creating compelling long-term worth for our shareowners.”
Final month, Honeywell introduced a plan to spin off its Superior Supplies enterprise into an unbiased, U.S. publicly traded firm, which is focused to be accomplished by the top of 2025 or early 2026.
Honeywell held money and equivalents of about $10.6 billion as of September 30, 2024.
Buyers can achieve publicity to the inventory by way of Amplify CWP Enhanced Dividend Earnings ETF DIVO and Invesco Aerospace & Protection ETF PPA.
Value Motion: HON shares are up 1.01% at $228.38 on the final examine Friday.
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