Charlotte, N.C.-based Honeywell has agreed to sell its personal protective equipment business to Latham, N.Y.-based Protective Industrial Products Inc. (PIP), a portfolio company of private equity firm Odyssey Investment Partners, for $1.3 billion in an all-cash transaction.
Honeywell's PPE business, part of its industrial automation business portfolio, has about 5,000 employees and operates 20 manufacturing sites and 17 distribution sites in the U.S., Mexico, Europe, North Africa, Asia Pacific and China. Honeywell will retain its gas detection portfolio within the industrial automation segment.
The deal is part of Honeywell's plan to restructure to focus on automation, aviation and energy transition, it said in a Nov. 22 news release.
"As a leader in personal protective equipment, we have a uniquely talented team and a rich legacy of award-winning innovations that position us for continued long-term success delivering a full suite of head-to-toe safety solutions to our longstanding customer base," Honeywell PPE President and CEO Mike Garceau said in the release. "This is an exciting next chapter for our business. PIP has a strong reputation in our industry, with a 40-year track record of providing proven safety solutions and exceptional customer support around the world."
"We are delighted to welcome these brands, capabilities and new employees into PIP with the acquisition of Honeywell's PPE Business, which is highly complementary to our business," Curt Holtz, president and CEO of PIP, said in a separate release. "The combination of our expanded portfolio of brands and enhanced geographic reach will enable us to offer more growth opportunities for our valued customers around the world."
Honeywell declined to comment further on the sale. A spokesperson for Protective Industrial Products did not immediately respond to request for comment by Plastics News.
When the global COVID-19 pandemic hit in March 2020, Honeywell increased production of N95 masks in Smithfield, R.I., and added mask production at an aerospace site in Phoenix. But less than two years later, the company auctioned off new equipment that it had purchased to make masks.
"Over the last five years, our PPE business has experienced significant wins as a result of its operational improvement initiatives, footprint rationalization and quick adaptation to global needs following the pandemic," 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."
The transaction is expected to be completed in the first half of 2025.
The transaction follows Honeywell's divestiture of its lifestyle and performance footwear business to Rocky Brands for $230 million in 2021 and completes Honeywell's exit from PPE, the release said. Honeywell disclosed in its Q3 2024 earnings its intention to sell the PPE business and optimize its portfolio by divesting from non-core lines of business.
Honeywell has completed four acquisitions over the last 12 months. It announced a plan last month to spin off its advanced materials business into an independent, publicly traded U.S. company, which is targeted to be completed by the end of 2025 or early 2026.