Air Products Completes $1.81 Billion Sale of Liquefied Natural Gas Process Technology and Equipment Business to Honeywell
Air Products (NYSE: APD) has completed the sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in cash.
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Rhea-AI Summary
Air Products (NYSE: APD) has completed the sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in cash. The strategic divestiture, first announced in July 2024, reflects Air Products' commitment to its two-pillar growth strategy: profitably growing its core industrial gases and related equipment businesses, and delivering clean hydrogen at scale.
The transaction includes the transfer of related assets, intellectual property, manufacturing capability, and approximately 475 employees, as well as the Port Manatee, Florida coil-would heat exchanger manufacturing facility. Lazard, Inc. served as financial advisors, while Skadden, Arps, Slate, Meagher & Flom LLP provided external legal counsel for the deal.
Positive
- Completed sale of LNG business for $1.81 billion in cash
- Strategic alignment with core industrial gases and clean hydrogen growth strategy
- Successful transfer of assets, IP, and manufacturing capability to Honeywell
Negative
- Loss of approximately 475 employees to Honeywell
- Divestiture of Port Manatee manufacturing facility
Details
News Market Reaction – APD
The recorded move for APD in the trading session of this news was -0.87%.
Data tracked by StockTitan Argus. Session date unavailable.
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Strategic divestiture reflects Air Products' commitment to its industrial gases and clean hydrogen growth strategy
- All related assets, intellectual property, manufacturing capability, and personnel have successfully transferred to Honeywell
The divestiture of the LNG process technology and equipment business is strategic, reflecting Air Products' firm focus on its two-pillar growth strategy to profitably grow its core industrial gases and related equipment businesses, and to deliver clean hydrogen at scale.
With the sale, related assets, manufacturing capability and personnel associated with the LNG process technology and equipment business have transferred successfully to Honeywell, including approximately 475 employees and the
Chairman, President and Chief Executive Officer Seifi Ghasemi said, "I want to thank our former LNG colleagues for their contributions, hard work and expertise, which have built a strong foundation that Honeywell can now take forward. Air Products remains laser focused on creating shareholder value by executing our growth strategy in industrial gases and clean hydrogen to drive the energy transition and decarbonize."
Lazard, Inc. served as financial advisors to Air Products, while Skadden, Arps, Slate, Meagher & Flom LLP provided external legal counsel.
About Air Products
Air Products (NYSE: APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products' base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world's largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products provides turbomachinery, membrane systems and cryogenic containers globally.
The Company had fiscal 2023 sales of
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SOURCE Air Products
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