Honeywell to Acquire Air Products’ LNG Process Unit For $1.8B

Honeywell’s latest Air Products LNG process technology acquisition has sent waves across the industry in recent developments. As per the news, the total value of the acquisition was around $1.81 billion in cash, making it the company’s fourth-largest acquisition in this year.

This acquisition is poised to enhance the LNG (Liquified Natural Gas) business by adding advanced mechanisms like heat exchangers and cryogenic equipment to Honeywell’s portfolio. These cryogenic equipment and natural gas liquefaction processes are included in both onshore and offshore operations. The company’s coil-wound heat exchangers are used for reliable liquefaction with minimal deck space requirements. According to the company, this will help the company meet the growing demand of its consumers. 

Sheila Kahyaoglu, the analyst at Jefferies, mentioned that “With the addition of Air Products LNG and expected year-end close, Honeywell is on track to deploy ~$15 billion in 2024 across M&A.” Further, the company’s CEO Vimal Kapur mentioned, “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.”

What Are The Honeywell’s Mega Plans?

After becoming CEO, Vimal Kapur has shifted the company’s objectives to three revolutionary trends: automation, the future of aviation, and energy transition. To become a leading company in the industry, Honeywell announced in the previous month that it would invest $1.9 billion in the acquisition of aerospace and defence technology provider CAES Systems. These investments, especially in Air products, are likely to improve the company’s adjusted earnings per share in the first full year of ownership.