HONEYWELL COMPLETES ACQUISITION OF SUNDYNE TO EXPAND PROCESS INDUSTRY CAPABILITIES

Rhea-AI Summary

Honeywell (NASDAQ: HON) has completed its $2.16 billion all-cash acquisition of Sundyne from Warburg Pincus, expanding its process industry capabilities. Sundyne, a leader in engineered pumps and gas compressors, brings approximately 1,000 skilled employees and significant aftermarket revenue. The acquisition is expected to immediately boost Honeywell's sales growth, segment margins, and adjusted EPS. The integration enhances Honeywell UOP's value chains in refining, petrochemicals, LNG, and clean fuels, with solutions unified under the Honeywell Forge platform. This acquisition is part of Honeywell's broader strategic transformation, which includes $13.5 billion in recent acquisitions and planned spin-offs of its Aerospace Technologies and Solstice Advanced Materials businesses.

Positive

• Immediate accretive impact on sales growth, segment margins, and adjusted EPS
• Addition of 1,000 skilled employees and significant aftermarket revenue stream
• Strategic enhancement of Honeywell UOP's value chains in refining, petrochemicals, and clean fuels
• Integration with Honeywell Forge platform strengthens company's position in energy transition

Negative

• Significant cash outlay of $2.16 billion impacts company's cash reserves
• Integration costs and challenges may affect short-term performance

Insights

M&A Strategy Expert

Honeywell's $2.16B Sundyne acquisition strengthens process industry capabilities with immediate financial benefits and strategic energy transition positioning.

Honeywell's $2.16 billion all-cash acquisition of Sundyne represents a strategic expansion of its process industry capabilities with significant financial and operational advantages. The deal adds Sundyne's specialized pumps and gas compressors to Honeywell's Energy and Sustainability Solutions (ESS) segment, bringing approximately 1,000 skilled employees and a valuable installed base generating substantial aftermarket revenue.

This acquisition is particularly notable for its immediate financial impact, expected to boost Honeywell's sales growth, segment margins, and adjusted EPS in the first full year. The integration creates technical synergies by combining Sundyne's engineering expertise with Honeywell's automation systems and Forge platform, enabling more comprehensive solutions for refining, petrochemicals, LNG, and clean fuel applications.

The Sundyne purchase fits within Honeywell's broader portfolio transformation, which includes $13.5 billion in recent acquisitions and the planned spin-offs of its Aerospace Technologies and Solstice Advanced Materials divisions. This reflects a deliberate shift toward higher-margin businesses with recurring revenue streams. By integrating Sundyne's specialized equipment with its control systems and software capabilities, Honeywell strengthens its position in the energy transition market while expanding its aftermarket service opportunities—a particularly valuable revenue source in process industries where equipment reliability is critical.

• $2.16 billion acquisition of Sundyne expands Honeywell's ESS product portfolio and aftermarket services, integrating critical equipment with automation and control systems powered by Honeywell Forge
• Sundyne brings approximately 1,000 skilled employees and significant aftermarket revenue generated from a large installed base
• Honeywell's global reach and strong customer relationships help accelerate market access and adoption of Sundyne's specialized products and services

CHARLOTTE, N.C., June 9, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced the completion of its acquisition of Sundyne from private equity firm Warburg Pincus for $2.16 billion in an all-cash transaction. The acquisition of Sundyne—a leader in the design, manufacturing, and aftermarket support of highly-engineered pumps and gas compressors for process industries—is expected to be immediately accretive to Honeywell's sales growth and segment margins as well as to adjusted EPS in the first full year of ownership.

Sundyne's deep customer relationships, best-in-class products and technology will unlock strategic growth potential for Honeywell UOP's value chains in refining and petrochemicals, liquefied natural gas (LNG) and clean and renewable fuels. Unified under the Honeywell Forge platform, the combined solution provides a scalable, full-spectrum approach that positions Honeywell as a leader in the energy transition.

"Merging Sundyne's differentiated products with Honeywell's leading technology and R&D capabilities positions our business for significant growth," said Ken West, President and CEO of Honeywell's Energy and Sustainability Solutions (ESS) segment. "By enhancing our end-to-end process technology and critical equipment offerings, this acquisition allows us to provide improved solutions for our customers."

The completion of this acquisition follows Honeywell's announcement of the planned spin-offs of its Aerospace Technologies and Solstice Advanced Materials businesses, which will result in three publicly listed industry leaders with distinct strategies and growth drivers. Since December 2023, Honeywell has announced a number of strategic actions to drive organic growth and simplify its portfolio, including $13.5 billion of accretive acquisitions. In addition to Sundyne, these acquisitions include: the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, the LNG business from Air Products and Johnson Matthey's Catalyst Technologies Business. Honeywell also completed the sale of its Personal Protective Equipment business to Protective Industrial Products last month.

About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three powerful megatrends – automation, the future of aviation and energy transition – underpinned by our Honeywell Accelerator operating system and Honeywell Forge IoT platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations through our Aerospace Technologies, Industrial Automation, Building Automation and Energy and Sustainability Solutions business segments that help make the world smarter and safer as well as more secure and sustainable. For more news and information on Honeywell, please visit www.honeywell.com/newsroom.

We describe many of the trends and other factors that drive our business and future results in this release. Such discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates will or may occur in the future and include statements related to the proposed spin-off of the Company's Advanced Materials business into a stand-alone, publicly traded company and the proposed separation of Automation and Aerospace. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors, many of which are difficult to predict and outside of our control. They are not guarantees of future performance, and actual results, developments and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to material risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as lower GDP growth or recession, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, that can affect our performance in both the near- and long-term. In addition, no assurance can be given that any plan, initiative, projection, goal, commitment, expectation, or prospect set forth in this release can or will be achieved. These forward-looking statements should be considered in light of the information included in this release, our Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking plans described herein are not final and may be modified or abandoned at any time.

Contacts:
Media	Investor Relations
Stacey Jones	Sean Meakim
(980) 378-6258	(704) 627-6200
Stacey.Jones@honeywell.com	Sean.Meakim@honeywell.com

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SOURCE Honeywell

FAQ

How much did Honeywell pay for Sundyne?

Honeywell acquired Sundyne for $2.16 billion in an all-cash transaction from private equity firm Warburg Pincus.

What does Sundyne bring to Honeywell's business?

Sundyne brings approximately 1,000 skilled employees, significant aftermarket revenue, and expertise in engineered pumps and gas compressors for process industries.

How will the Sundyne acquisition affect Honeywell's financials?

The acquisition is expected to be immediately accretive to Honeywell's sales growth, segment margins, and adjusted EPS in the first full year of ownership.

What are Honeywell's other strategic changes announced with this acquisition?

Honeywell announced planned spin-offs of Aerospace Technologies and Solstice Advanced Materials businesses, along with $13.5 billion in recent acquisitions including Access Solutions, Civitanavi Systems, and others.

How does the Sundyne acquisition fit into Honeywell's energy strategy?

The acquisition enhances Honeywell UOP's value chains in refining, petrochemicals, LNG, and clean fuels, strengthening its position in the energy transition through integration with the Honeywell Forge platform.