• The acquisition will build on Honeywell’s energy transition capabilities by creating an end-to-end offering for customers worldwide
• The combination will create new opportunities for diversified growth and innovation in aftermarket services and software
• The transaction is expected to be immediately accretive to Honeywell’s sales growth and segment margin while also accretive to adjusted EPS in the first full year of ownership
• Air Products to continue its focus on its industrial gas business and related technology and equipment and drive the energy transition through clean hydrogen at scale

INDIA: Honeywell (Nasdaq: HON) and Air Products (NYSE: APD) jointly announced today that Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This represents approximately 13x the estimated 2024 EBITDA.

As a result of the acquisition, Honeywell will be able to offer customers a comprehensive, top-tier solution for managing their energy transformation journey. The new holistic offering will encompass natural gas pre-treatment and state-of-the-art liquefaction, utilizing digital automation technologies unified under the Honeywell Forge and Experion platforms. This full-service solution will enable efficient, reliable, and optimized management of natural gas assets, delivering unparalleled value and support.

Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. Air Products’ complementary LNG process technology and equipment business consists of a comprehensive portfolio, including in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment. CWHEs provide the highest throughput of natural gas in a single exchanger with a small footprint and robust, reliable, and safe operations both onshore and offshore.

“While 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,” said Vimal Kapur, Chairman and CEO of Honeywell.

This highly complementary acquisition will further strengthen our energy transition portfolio, and Air Products’ CWHE technology will immediately expand our installed base – creating new opportunities to compound growth in aftermarket services and digitalization through our Honeywell Forge platform,” Kapur added.

“The decision to divest our LNG heat exchanger technology and equipment business reflects Air Products’ continued focus on its two-pillar strategy — to grow our core industrial gas business and related technology and equipment, and to be a first-mover delivering clean hydrogen at scale to decarbonize industrial and heavy-duty transportation sectors,” said Air Products’ Chairman, President and Chief Executive Officer Seifi Ghasemi. “The LNG business is a great business and at its strongest point in its decades-long history thanks to the outstanding work of our people, and they will be in good hands to advance as part of Honeywell’s related portfolio of technologies.”

The LNG market has quadrupled over the past 20 years and is expected to double over the next two decades, driven by demand in key end markets including power and data centers according to industry research.

Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment said, “The integration of this talented team and the acquired proprietary technologies will enable Honeywell UOP to bring a full spectrum of scalable solutions and services that help our global customers navigate the complex journey to more sustainable and efficient energy practices.”

Air Products’ LNG Business has approximately 475 employees with headquarters in Allentown, Pennsylvania, and a 390,000-square-foot manufacturing facility in Port Manatee, Florida, where all sizes of CWHEs are made.

This is the fourth acquisition Honeywell has announced this year as part of its disciplined capital deployment strategy. The company is focused on high-return acquisitions that will drive future growth across its portfolio, which is aligned with the three compelling megatrends of automation, the future of aviation, and energy transition.

This transaction, which is expected to be adjusted earnings per share accretive in the first full year of ownership is not subject to any financing conditions and is expected to close before the end of the calendar year, subject to customary closing conditions, including receipt of certain regulatory approvals.

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NEW DELHI: CNH, a global leader in agricultural and construction solutions, proudly celebrates the 25th anniversary of its brand, New Holland in India. Since its inception, the brand has been at the forefront of introducing cutting-edge technological advancements to the country’s agricultural sector. It has pioneered the baling technique for crop residue and is a market leader in the segment.

As part of the celebrations, the company showcased its wide range of farm equipment at its Greater Noida manufacturing plant, including tractors, combine harvesters, and balers. CNH also presented its local R&D capability by demonstrating precision technology, including telematics and software apps, developed and integrated across product segments by the India Technology Center.

Narinder Mittal, Country Manager & Managing Director of CNH India & SAARC said “As we commemorate 25 years of New Holland’s journey in India, we take pride in our commitment to delivering not only cutting-edge technology and superior products, but also in our unwavering dedication to supporting hardworking farmers – the backbone of our nation. We look forward to the next chapter with a renewed promise to bring forth innovation, quality, and service that not only empower our farmers but also contribute to the growth of the Indian economy and communities.“

The Greater Noida manufacturing facility is one of the most advanced tractor manufacturing facilities in India, with an annual production capacity of over 60,000 machines. The plant operates according to the company’s CNH Business System which drives greater accountability, agility, efficiency, and safety, and is aligned with the country’s Make-in-India and Aatmanirbhar Bharat initiatives, delivering over two decades of continuous production for both domestic and export markets. Recently, it achieved the impressive production milestone of over 6.7 Lakh tractors.

CNH India remains committed to sustainability and environmental stewardship. With a firm focus on reducing its carbon footprint, the plant has made significant strides, reducing approximately 26,000 tons of CO2 emissions over the past decade. Embracing renewable energy sources, solar panels installed at the Greater Noida plant provide some 25% of the facilities’ energy requirements. Furthermore, the facility has adopted the Miyawaki Project Methodology, planting over 10,000 trees of 30 different species covering 3,000 square meters.

CNH India serves the country through its Case IH, New Holland, and CASE Construction Equipment brands, delivering on the promise to provide world-class products of engineering excellence. The company has a robust network of 470+ dealers and over 1,000 touchpoints in India, demonstrating its strong and trusted presence.

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