Honeywell and Air Products jointly announced that Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in cash. The acquisition amounts to about 13 times the business’s projected 2024 earnings before interest, tax, depreciation and amortisation.

Following the completion of the transaction, Honeywell will be able to offer customers a comprehensive, high-end solution to help enable the energy transition journey. The new total solution will cover gas pretreatment and advanced liquefaction technologies, leveraging the connected services and Experion® platform’s unified digital automation technology. This comprehensive service solution enables efficient, reliable and optimized gas asset management, delivering value and support beyond expectations.

NTCF21 Today, Honeywell offers pre-treatment solutions for LNG customers worldwide that complement Air Products’ LNG process technology and equipment business to form a complete portfolio that includes the indigenous design and manufacture of wound tube heat exchangers (CWHEs) and related equipment. The coiled tube heat exchanger provides the highest gas throughput in a single exchanger with a small footprint for reliable, stable and safe operation both onshore and offshore.

“While countries around the world continue to build the infrastructure of the future based on renewable energy, natural gas continues to help meet growing and unpredictable global energy demand as a key low-emission, affordable transition fuel.” This highly complementary acquisition will further strengthen our energy transition portfolio. Air Products’ coiled tube heat exchanger technology will immediately expand our base of users and create new opportunities for compound growth in aftermarket service and digitalization through a connected service platform.”

Ke Weimao

Vimal Kapur

— Chairman and CEO of Honeywell

“Our decision to divest our LNG heat exchanger Technology and equipment business reflects Air Products’ continued focus on our two-pillar strategy – growing our core industrial gases business and associated technologies and equipment, and becoming a leader in delivering clean hydrogen at scale to decarbonize the industrial and heavy transportation industries.” The LNG business is a great business. Thanks to the incredible work of our people, it is now at its peak after decades of development and will continue to do so as part of Honeywell’s relevant technology portfolio.”

— Seifi Ghasemi

NTCF21 Chairman, President and Chief Executive Officer, Air Products

Industry research shows that the global LNG market has quadrupled in size over the past 20 years and is expected to double in the next 20 years, driven by demand from key end markets including power and data centers.

“The combination of this talented team and the acquired know-how will enable Honeywell UOP to deliver a full range of scalable solutions and services to help our global customers achieve more sustainable and efficient energy practices in their complex transformation journeys.” ”

— Wei Sicheng

Ken West

President and CEO, Honeywell Energy & Sustainable Technologies Group

Air products

Air Products’ LNG business, headquartered in Allentown, Pennsylvania, employs approximately 475 people and has a 390,000-square-foot manufacturing facility in Port Manatee, Florida, that produces a wide range of coiled tube heat exchangers. This is the fourth acquisition Honeywell has announced this year as part of its rigorous capital deployment strategy. The company is focused on high-return acquisitions that will drive future growth in its portfolio and ride three major trends: automation, the future of Aviation, and the Energy transition.

The transaction is expected to be accretive to adjusted earnings per share in the first full year following completion of the acquisition, is not subject to any financing conditions and is expected to close within the natural year subject to general closing conditions, including relevant regulatory approvals.