Honeywell (HON) Offloads PSS Business to Brady (BRC) in $1.4 Billion Cash Deal

Key Highlights

• Brady Corporation has agreed to acquire Honeywell’s Productivity Solutions and Services (PSS) division for $1.4 billion in an all-cash transaction
• The PSS business recorded approximately $1.1 billion in annual revenue during 2025 and maintains a workforce of about 3,000 employees worldwide
• The transaction values PSS at around 8x its 2025 EBITDA multiple
• This divestiture represents another step in Honeywell’s strategic portfolio restructuring prior to its anticipated Aerospace business separation in the third quarter of 2026
• Brady anticipates the acquisition will deliver double-digit accretion to adjusted diluted earnings per share in year one, alongside $25 million in yearly cost savings achievable within three years

On April 20, 2026, Honeywell (HON) revealed its decision to divest the Productivity Solutions and Services division to Brady Corporation (BRC) through a $1.4 billion all-cash transaction.

The PSS division specializes in manufacturing mobile computing devices, barcode scanning equipment, and industrial printing technologies, primarily serving warehouse operations and logistics customers. The business unit generated approximately $1.1 billion in annual sales throughout 2025.

The acquisition price of $1.4 billion represents approximately 8 times the PSS division’s 2025 EBITDA performance. Transaction completion is anticipated during the latter half of 2026, contingent upon receiving necessary regulatory clearances.

Honeywell International Inc., HON

The planned Aerospace business separation remains scheduled for the third quarter of 2026.

This transaction marks another in a series of recent divestitures by Honeywell. The corporation previously sold its Personal Protective Equipment division in 2024 and completed the spinoff of its Advanced Materials business as Solstice Advanced Materials (SOLS) during October 2025.

Additionally, Honeywell continues evaluating strategic alternatives for its Warehouse and Workflow Solutions operations, which encompass the Intelligrated and Transnorm product lines.

Strategic Expansion for Brady Corporation

For Brady, this acquisition represents a substantial strategic expansion. The Milwaukee-headquartered producer of identification solutions, signage, and workplace safety products is leveraging the PSS transaction to enter the data capture, mobile computing, and workflow automation markets.

Brady management projects the acquisition will generate double-digit accretion to adjusted diluted earnings per share during the first complete fiscal year following transaction closure. The organization has established a target of achieving at least $25 million in annual cost synergies within a three-year timeframe.

Following transaction financing, the deal is expected to elevate Brady’s pro forma net debt to EBITDA leverage ratio to approximately 2.5x — a metric that investors will monitor closely throughout the integration phase.

Transaction Structure and Expected Timing

The agreement is structured as an all-cash acquisition, with Centerview Partners serving as Honeywell’s financial advisor. Legal representation includes Kirkland & Ellis, Baker McKenzie, and Womble Bond Dickinson.

Transaction closure is projected for the second half of 2026, pending customary regulatory approvals and satisfaction of closing conditions.

PSS currently operates within Honeywell’s Industrial Automation business segment. Following deal completion, the unit will function under Brady’s corporate structure as a component of an expanded industrial productivity and safety platform.

Since 2023, Honeywell has disclosed approximately $14 billion in strategic acquisitions while concurrently divesting non-strategic assets. The PSS divestiture represents the most recent action in this comprehensive portfolio repositioning initiative.

Brady’s PSS acquisition incorporates roughly 3,000 employees and an established customer base spanning warehouse operations, logistics providers, and manufacturing facilities.

The transaction remains subject to regulatory examination, with integration execution and talent retention identified as potential challenges to achieving the forecasted synergy benefits.

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