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Key Takeaways
- Honeywell said it would acquire the liquified natural gas process technology and equipment business from Air Products & Chemicals for $1.81 billion.
- Central to the deal are Air Products’ coil-wound heat exchangers, which provide high throughput of natural gas.
- The acquisition is Honeywell’s fourth announced deal this year.
Honeywell ( HON ) is continuing to shop for deals, announcing plans Wednesday to buy the liquified natural gas (LNG) process technology and equipment business from Air Products & Chemicals ( APD ) for $1.81 billion in cash in its fourth acquisition of the year.
The move, expected to close by the end of the year, gives Honeywell access to Air Products’ coil-wound heat exchangers, which provide “the highest throughput of natural gas in a single exchanger” with a minimal carbon footprint, the company said.
Shares of Honeywell were recently up more than 1%. Air Products’ shares edged higher.
Deal ‘Will Help Meet Ever-Increasing’ Energy Demands
“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,” Honeywell Chief Executive Officer (CEO ) Vimal Kapur said.
Air Products’ LNG division employs roughly 475 workers with headquarters in Allentown, Pa., and operates a 390,000-square-foot manufacturing facility in Port Manatee, Fla.
The move will help Air Products “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,” its CEO Seifi Ghasemi said.