Honeywell Cashes Out: $1.325 Billion PPE Business Sale Fuels Bold Portfolio Transformation

Honeywell International Inc. (NASDAQ:HON) shares are trading higher on Friday. The company has agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, Inc. (PIP) for $1.325 billion in an all-cash deal.

This move aligns with Honeywell’s strategy to streamline its portfolio, focusing on core businesses and pursuing high-return acquisitions that support its three key megatrends: automation, the future of aviation, and energy transition.

This sale follows Honeywell’s 2021 divestiture of its Lifestyle and Performance Footwear Business to Rocky Brands for $230 million, marking the company’s exit from the PPE sector.

However, Honeywell will retain its gas detection portfolio within the Industrial Automation segment.

The sale of the PPE business is expected to close in the first half of 2025, pending customary conditions.

Vimal Kapur, Chairman and CEO of Honeywell said, ”Now with this transaction, the business will be positioned to accelerate its growth trajectory as it benefits from Odyssey’s historic investing in the PPE sector and scaling similar businesses to expand into new products, geographies and end markets.”

“As we continue to simplify and optimize Honeywell’s portfolio, the sale of the PPE business will enable us to further strengthen our core business in alignment with our three compelling megatrends.”

”The combination of today’s announcement, with the strategic acquisitions we have made over the past year, positions us to continue to drive profitable growth and strong cash generation while creating compelling long-term value for our shareowners.”

Last month, Honeywell announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.

Honeywell held cash and equivalents of about $10.6 billion as of September 30, 2024.

Investors can gain exposure to the stock via Amplify CWP Enhanced Dividend Income ETF (NYSE:DIVO) and Invesco Aerospace & Defense ETF (NYSE:PPA).

Price Action: HON shares are up 1.01% at $228.38 at the last check Friday.

Photo via Shutterstock

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