M&A Wrap: Honeywell Selling PPE Group for More Than $1.3 Billion | IndustryWeek
Honeywell International Inc.’s Chairman and CEO, Vimal Kapur, recently made a big move to streamline the company by selling its personal protective equipment business to a competitor owned by a private equity firm for over $1.3 billion in an all-cash deal. This deal includes around 5,000 employees across the globe and is expected to be finalized by mid-2025.
Protective Industrial Products Inc. (PIP), the acquiring company, was founded in 1984 and is currently owned by Odyssey Investment Partners. PIP has been expanding its presence in the PPE market and acquiring various ventures since 2020. The acquisition of Honeywell’s PPE business will further strengthen PIP’s international reach.
Kapur’s decision to sell the PPE business is part of a larger strategy to focus on automation, aviation, and energy transition within Honeywell. Just recently, Honeywell announced plans to spin off its advanced materials division into a separate entity. Additionally, Elliott Investment Management has taken a stake in Honeywell and suggested a potential full separation of its aerospace and automation groups, making the $1.3 billion cash injection from the PPE sale crucial for any future restructuring.
In another development in the automation sector, private investment firm Woodson Equity has purchased First Source Electronics, a company specializing in control panels and electromechanical systems, from Commercial Vehicle Group Inc. The deal, which could amount to $3.5 million, signifies CVG’s commitment to refocusing its business strategy.
First Source Electronics caters primarily to the warehousing and industrial sectors, serving clients like Walmart, UPS, and Amazon. Despite recent financial struggles, Woodson Equity plans to enhance the company’s strengths and customer relationships to drive growth and success in the market.
Moreover, Applied Industrial Technologies Inc. (AIT) has announced an agreement to acquire Hydradyne, one of the largest distributors of fluid power and motion control systems in the Southeast, for approximately $270 million. This strategic purchase will allow AIT to expand its footprint in the fluid power market and provide enhanced services to its customers.
These developments underscore the dynamic nature of the finance and securities & exchange market, with companies making strategic moves to adapt to changing industry landscapes and capitalize on new growth opportunities.
