HONEYWELL TO SELL PRODUCTIVITY SOLUTIONS AND SERVICES BUSINESS TO BRADY CORPORATION

Rhea-AI Summary

Honeywell agreed to sell its Productivity Solutions and Services (PSS) business to Brady Corporation (NYSE: BRC) for $1.4 billion in an all-cash deal expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.

PSS reported approximately $1.1 billion in 2025 revenue and supplies mobile computers, barcode scanners and printers. Honeywell said the divestiture accelerates portfolio simplification ahead of its planned Aerospace spin-off in Q3 2026 and leaves WWS under review.

Positive

• Proceeds of $1.4B expected from PSS sale
• PSS revenue ~$1.1B in 2025 shows material scale
• Portfolio simplification ahead of Aerospace spin-off in Q3 2026
• Brady gains data-capture, mobile computing and workflow automation capabilities

Negative

• Transaction is subject to regulatory approvals and customary closing conditions
• Honeywell continues to evaluate WWS, leaving strategic uncertainty for that business
• Sale reduces Honeywell Industrial Automation scope by transferring PSS revenue to Brady

News Market Reaction – SOLS

+0.25%

+0.25% Session close to close

In the Apr 20 session, SOLS gained 0.25%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement reflects Honeywell’s continued portfolio simplification, including a planned Aeros...

Analysis

This announcement reflects Honeywell’s continued portfolio simplification, including a planned Aerospace spin-off by Q3 2026 and the sale of its PSS business for $1.4 billion. For Solstice, which was spun off earlier, it underscores the broader separation strategy around advanced materials and core industrial assets. Investors may track how these moves affect long-term customer relationships, capital allocation, and the growth backdrop that previously supported SOLS’s $3.9B in 2025 net sales and dividend initiation.

Key Figures

PSS sale price: $1.4 billion PSS revenue: $1.1 billion Announced M&A: $14 billion +3 more

6 metrics

PSS sale price $1.4 billion All-cash sale of Productivity Solutions and Services to Brady

PSS revenue $1.1 billion Approximate 2025 revenue for PSS business

Announced M&A $14 billion Accretive and synergistic acquisitions announced since 2023

Aerospace spin timing Q3 2026 Planned completion timing for Honeywell Aerospace spin-off

Strategic review start July 2025 Start of strategic alternatives review for PSS and WWS

Deal close window Second half 2026 Expected completion period for PSS sale

Historical Context

5 past events · Latest: Apr 06 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 06	Earnings date notice	Neutral	+2.1%	Announced timing of Q1 2026 results and conference call details.
Feb 11	Earnings results	Positive	+17.5%	Reported Q4 and full-year 2025 results with guidance for 2026.
Feb 11	Dividend initiation	Positive	+17.5%	Declared first quarterly cash dividend of $0.075 per share.
Feb 10	Capacity expansion	Positive	+17.5%	Outlined UF6 production expansion to over 10 kt supported by >$2B backlog.
Feb 10	Clarification release	Neutral	+17.5%	Correction confirming UF6 production outlook and backlog figures.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent news has generally been followed by positive price reactions, especially around earnings, dividends, and capacity expansion updates.

Recent Company History

Over the last few months, Solstice Advanced Materials has highlighted growth and capital-return milestones. Q4 2025 results on Feb 11 showed Net Sales of $987M and full-year 2025 Net Sales of $3.9B, with a strong price reaction of about 17.48%. The same day, SOLS announced its first quarterly dividend of $0.075 per share. On Feb 10, the company detailed plans to produce over 10 kt of UF6 in 2026, supported by a backlog of over $2B. An earnings date announcement on Apr 6 also coincided with a positive move.

Key Terms

spin-off, all-cash transaction, regulatory approvals, divestiture

4 terms

spin-off financial

"as Honeywell prepares for the planned spin-off of its Aerospace business"

A spin-off happens when a company creates a new, independent business by separating part of itself, like splitting off a division into its own company. This often happens so the new company can focus better on its own goals or attract different investors. It matters because it can lead to more growth opportunities and clearer focus for both companies.

View in glossary

all-cash transaction financial

"for $1.4 billion in an all-cash transaction"

An all-cash transaction is a deal where the full purchase price is paid immediately in cash or cash equivalents, rather than through financing or installment payments. For investors, this type of transaction often indicates a quick, straightforward sale and can signal confidence from the buyer, potentially affecting the value and perception of the involved assets.

regulatory approvals regulatory

"expected to be completed in the second half of 2026 and is subject to regulatory approvals"

Regulatory approvals are official permissions from government agencies that a company needs before launching a new product, service, or business activity. They matter because without this approval, the company might not be allowed to operate legally or sell its products, similar to how a driver needs a license to legally drive a car.

divestiture financial

"This announcement follows the divestiture of Honeywell's Personal Protective Equipment (PPE) business"

Divestiture is the process of selling or getting rid of a part of a company, such as a division or asset. It often happens when a business wants to focus on its core activities or improve its finances. For investors, divestitures can signal strategic shifts or influence the company's value, affecting investment decisions.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Accelerates portfolio simplification as Honeywell prepares for the planned spin-off of its Aerospace business, on track for Q3 2026

CHARLOTTE, N.C., April 20, 2026 /PRNewswire/ -- Honeywell (Nasdaq: HON) today announced that it has agreed to sell its Productivity Solutions and Services ("PSS") business to Brady Corporation, an international manufacturer of identification and protection solutions, for $1.4 billion in an all-cash transaction. The transaction is expected to be completed in the second half of 2026 and is subject to regulatory approvals and customary closing conditions.

The transaction follows the review of strategic alternatives Honeywell commenced in July 2025 for PSS and its Warehouse and Workflow Solutions ("WWS") business to further simplify the company's portfolio alongside the planned spin-off of its Aerospace business, which is expected to be complete in the third quarter of 2026. Honeywell remains actively engaged in its assessment of strategic alternatives for WWS, which operates commercially under the brand names Intelligrated and Transnorm.

"With the PSS divestiture, we are nearing completion of our multi-year portfolio transformation, further accelerating value creation as we prepare to separate our Aerospace and Automation businesses into two independent industry leading public companies. The sale also enables us to continue strengthening our financial and operational focus on the company's core businesses," said Vimal Kapur, Chairman and CEO of Honeywell.

"Going forward, PSS will benefit from Brady's highly complementary and specialized leadership in industrial identification and safety, creating a broader, more integrated offering for warehouse, logistics and manufacturing customers," Kapur added.

With 2025 revenue of approximately $1.1 billion, PSS is a leading provider of mobile computers, barcode scanners and printing solutions serving the warehouse and logistics market. PSS is currently part of Honeywell's Industrial Automation (IA) business portfolio.

Brady Corporation (NYSE: BRC) is an international manufacturer and marketer of high-performance labels, signs, safety devices and printing systems for industries that include electronics, manufacturing and aerospace. Brady provides products that enhance safety, security and productivity. The acquisition of PSS will help build Brady's capabilities in data capture, mobile computing and workflow automation, increasing its portfolio serving industrial and logistics customers, while creating a more integrated, end‑to‑end productivity and safety platform.

This announcement follows the divestiture of Honeywell's Personal Protective Equipment (PPE) business in 2024 and the spin-off of its Advanced Materials business as Solstice Advanced Materials (Nasdaq: SOLS) in October 2025. It also builds on the prior strategic actions Honeywell has taken to drive organic growth and optimize its portfolio, including announcing approximately $14 billion of accretive and synergistic acquisitions since 2023: Compressor Controls Corporation, SCADAfence, the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, the LNG business from Air Products, Sundyne, Li-ion Tamer and Johnson Matthey's Catalyst Technologies Business.

Centerview Partners is serving as financial advisor to Honeywell. Kirkland & Ellis LLP,  Baker McKenzie and Womble Bond Dickinson are providing external legal counsel.

About Honeywell 
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world, with a portfolio that is underpinned by our Honeywell Accelerator operating system and Honeywell Forge platform. As a trusted partner, we help organizations solve the world's toughest, most complex challenges, providing actionable solutions and innovations for aerospace, building automation, industrial automation, process automation, and process technology 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.

Forward Looking Statement
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), including statements related to the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. Forward-looking statements are those that address activities, events, or developments that we or our management intend, expect, project, believe, or anticipate will or may occur in the future. 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, including Honeywell's current expectations, estimates, and projections regarding the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses. 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, including the proposed separation of Honeywell from Honeywell Aerospace and the planned sale of the Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, and the anticipated benefits of each. 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 changes in or application of trade and tax laws and policies, including the impacts of tariffs and other trade barriers and restrictions, lower GDP growth or recession in the U.S. or globally, supply chain disruptions, capital markets volatility, inflation, and certain regional conflicts, including ongoing conflicts in the Middle East, 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 our 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	Mark Macaluso
(980) 378-6258	(704) 627-6118
Stacey.Jones@honeywell.com	mark.macaluso@honeywell.com

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SOURCE Honeywell

FAQ

How much is Brady (BRC) paying for Honeywell's PSS business and when will the deal close?

Brady is paying $1.4 billion in an all-cash transaction. According to the company, the deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.

What size was Honeywell's PSS business before the sale and what products does it include?

PSS generated approximately $1.1 billion in 2025 revenue and supplies mobile computers, barcode scanners and printing solutions. According to the company, it serves warehouse, logistics and manufacturing customers.

What does the PSS sale mean for Honeywell's planned Aerospace spin-off in Q3 2026?

The sale accelerates Honeywell's portfolio simplification as it prepares the Aerospace spin-off. According to the company, divesting PSS helps sharpen focus ahead of the Q3 2026 separation.

How will the PSS acquisition affect Brady's product and market capabilities (NYSE: BRC)?

The acquisition adds data-capture, mobile computing and workflow automation to Brady's offerings. According to Brady-related disclosures, this builds a more integrated productivity and safety platform for industrial and logistics customers.

Are there regulatory or other conditions that could delay the Honeywell PSS sale to Brady (BRC)?

Yes. The transaction is subject to regulatory approvals and customary closing conditions, which could delay completion. According to the company, closing is anticipated in the second half of 2026 but is not guaranteed.