Honeywell announced its agreement to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, Inc. (PIP), a portfolio company of Odyssey Investment Partners.
As reported by Honeywell, the $1.325 billion all-cash transaction is part of its strategy to streamline its portfolio.
This move focuses on three strategic areas: automation, the future of aviation, and energy transition.
Honeywell’s PPE business has approximately 5,000 employees, operating 20 manufacturing and 17 distribution sites globally.
This divestiture follows Honeywell’s sale of its Lifestyle and Performance Footwear Business in 2021 for $230 million.
The company will retain its gas detection portfolio within its Industrial Automation segment.
PIP, a global supplier and manufacturer of PPE, will acquire Honeywell’s PPE operations as part of this agreement.
Odyssey Investment Partners, known for investing in industrial and business services, will oversee efforts to expand the product line and market reach.
According to Vimal Kapur, Chairman and CEO of Honeywell, the sale allows Honeywell to focus on its core businesses.
Kapur stated: “The sale of the PPE business will enable us to further strengthen our core business in alignment with our three compelling megatrends.”
Mike Garceau, President and CEO of Honeywell PPE, expressed optimism about joining PIP.
He stated: “We look forward to joining the PIP family and continuing to build a strong future for our employees and delivering value for our customers across the globe.”
The sale of the PPE business aligns with Honeywell’s broader efforts to optimize its portfolio by divesting non-core business lines.
Honeywell disclosed its plans to sell the PPE business during its Q3 2024 earnings report and has recently undertaken multiple strategic acquisitions in high-growth sectors.
In addition to this divestiture, Honeywell has announced plans to spin off its Advanced Materials business into a U.S. publicly traded company by 2026.
The PPE business transaction is expected to close in the first half of 2025, pending customary closing conditions.
Historical context of Honeywell’s PPE business transformation
Over the last five years, Honeywell’s PPE business has undergone operational improvements, including footprint rationalization and adapting to increased demand during the COVID-19 pandemic.
These changes enhanced its global reach and positioned the business as a competitive provider of industrial safety solutions.
As part of this transition, Honeywell will continue to focus on areas that align with its long-term goals of profitable growth and cash generation.
Honeywell has entered an agreement to sell its PPE business to PIP for $1.325 billion in cash.
This divestiture supports Honeywell’s portfolio simplification strategy, emphasizing automation, aviation advancements, and energy transition.
The PPE business operates 20 manufacturing and 17 distribution sites globally and employs approximately 5,000 people.
PIP, backed by Odyssey Investment Partners, aims to expand the PPE product line and geographic reach.
Honeywell retains its gas detection segment while focusing on its core areas.
The transaction is expected to close in the first half of 2025.
