Honeywell has announced that it has agreed to acquire Sundyne from private equity firm Warburg Pincus for $2.16 billion in an all-cash transaction. This represents approximately 14.5x 2024 EBITDA on a tax-adjusted basis.
Sundyne work in the design, manufacturing and aftermarket support of highly-engineered pumps and gas compressors used in process industries.
The addition of Sundyne’s differentiated equipment will enhance the ability of Honeywell‘s Energy and Sustainability Solutions (ESS) business segment to drive innovation and efficiency, while supporting critical energy security needs across the world.
Sundyne’s deep customer relationships, 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.
The combination will result in an improved product offering for customers as Honeywell Forge, a leading IoT platform, will enable the digitalization of Sundyne’s equipment to enhance reliability and predictive maintenance.
Utilizing Honeywell’s R&D capabilities, the combined company will also be able to further accelerate new product development in the pumps and compressors space.
Vimal Kapur, Chairman and CEO of Honeywell said: “By combining Honeywell’s top-tier technology with Sundyne’s leading process industry solutions, this acquisition will further enhance our dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals.
“Sundyne’s vast installed base of top-of-the-line pumps and compressors will further strengthen Honeywell’s brand in the process industry and create significant opportunities for us to continue expanding our aftermarket services business.”
Headquartered in Arvada, Colorado with additional locations around the globe, Sundyne brings approximately 1,000 skilled employees and a significant recurring aftermarket revenue generated from an extensive installed base.
The integration is expected to generate material run-rate revenue synergies with Honeywell UOP process licensing and modular capabilities, as well as a global sales reach.
Ken West, President and CEO of Honeywell‘s ESS segment shared: “Through the integration of Sundyne’s differentiated suite of products and equipment, combined with the process automation capabilities of our Honeywell Forge technology, we will be able to offer our customers a more comprehensive portfolio of solutions to meet their evolving needs.”
Sundyne’s CEO Mary Zappone added: “The combination of Sundyne and Honeywell will add significant value for our customers, channel partners and employees—and we’re honored to join the Honeywell family.
“There are numerous benefits that we can achieve together with Honeywell that will accelerate growth and improve efficiency for customers.”
The acquisition is expected to be immediately accretive to Honeywell’s sales growth and segment margin, as well as to adjusted EPS in the first full year of ownership.
Honeywell has announced Sundyne has been acquired from private equity firm Warburg Pincus for $2.16 billion in an all-cash transaction.
Vimal Kapur, Chairman and CEO of Honeywell shared his belief that the cquisition will further enhance the dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals.
