M&A Wrap: Honeywell Selling PPE Group for More Than $1.3 Billion | IndustryWeek
In a recent move to streamline operations, Honeywell International Inc. Chairman and CEO Vimal Kapur has announced a deal to sell the company’s personal protective equipment business to Protective Industrial Products Inc., a competitor owned by a private-equity firm. This all-cash transaction is valued at over $1.3 billion and involves approximately 5,000 employees across multiple facilities worldwide.
Protective Industrial Products Inc. (PIP), established in 1984, has seen significant growth since being acquired by Odyssey Investment Partners in 2020. With additional acquisitions and international expansion, PIP is set to further enhance its presence in the industry through the acquisition of Honeywell’s PPE business, expected to be finalized by mid-2025.
Kapur’s decision to divest the PPE business aligns with Honeywell’s strategic focus on automation, aviation, and energy transition initiatives. This move comes on the heels of the announcement to spin off the advanced materials division into a standalone entity. With plans for further restructuring in the pipeline, the recent sale of the PPE business could provide resources for future endeavors.
In another development, private investment firm Woodson Equity has acquired First Source Electronics, a subsidiary of Commercial Vehicle Group Inc. that specializes in control panels and electromechanical systems. This acquisition, valued at a potential $3.5 million, aims to revitalize First Source Electronics, which has faced challenges in recent times. By leveraging the company’s expertise and strengthening customer relationships, Woodson Equity is optimistic about the future prospects of First Source Electronics.
Meanwhile, Applied Industrial Technologies Inc. is expanding its footprint in the fluid power and motion control systems market with the acquisition of Hydradyne for approximately $270 million. This strategic move bolsters AIT’s presence in the Southeastern United States, positioning the company as a key player in the distribution of fluid power products.
These recent developments highlight the dynamic nature of the market and the strategic decisions being made by industry leaders to enhance their core business operations and drive growth.
