Yahoo Finance Honeywell notches another billion-dollar expansion. This time its focus is on energy.
Honeywell is buying a liquefied natural gas system from Air Products for $1.8 billion in an all-cash transaction, the companies announced on Wednesday.
The Charlotte-based electronics manufacturing giant will be able to expand energy transformation for its customers after the purchase, according to a joint news release. Honeywell will take over Air Products’ technology and equipment business for liquefied natural gas production. The process cools gas to a liquid state.
This is Honeywell’s fourth deal announced this year as part of its capital development strategy. Three of those deals were for over a billion dollars.
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Honeywell currently operates a pre-treatment solution for liquefied natural gas customers. The company will add Air Products’ in-house design and manufacturing of coil-wound heat exchangers and related equipment, according to the news release.
Honeywell Forge and Experion platforms, pre-treatment and liquefaction using digital automation technologies will be unified, according to the company.
Vimal Kapur, chairman and CEO of Honeywell, said in a statement that natural gas is a critical lower-emission fuel that will help meet increasing demands for global energy. He also said the purchase will strengthen the company’s energy transition portfolio.
Air Products is selling the business to Honeywell to grow its core industrial gas business, related technology, equipment and energy transition work, according to CEO Seifi Ghasemi.
The market for liquefied natural gas has quadrupled over the past 20 years and is expected to double over the next two decades, according to Honeywell and Air Products. It’s driven by a demand in the power and data centers.
Honeywell expands and expands
The latest acquisition for Honeywell aligns with trends in automation and the future of aviation and energy transition, according to the company.
In March, Honeywell acquired aerospace and defense manufacturer Civitanavi Systems for $214.3 million. Then in early June, plans were finalized to buy Carrier’s Global Access Solutions’ digital security businesses for about $5 billion.
Honeywell announced the purchase of CAES Systems Holdings LLC in late June from private equity firm Advent International in a $1.9 billion all-cash transaction.
More on Honeywell
Honeywell produces aerospace products, building technologies, performance materials and other technologies. It also provides safety and productivity services.
The company employs 95,000 people worldwide. This includes 33,000 people in the U.S. and 1,300 in Charlotte. Honeywell moved its global headquarters to Charlotte in 2018.
About Air Products
Air Products’ liquefied natural gas business has 475 employees with headquarters in Allentown, Pa. and a 390,000-square-foot manufacturing facility in Port Manatee, Fla.
The company was founded more than 80 years ago and serves energy, environmental and emerging markets. Air Products employs 23,000 people in 50 countries.
