Honeywell – Honeywell Completes Acquisition Of Air Products’ Liquefied Natural Gas Process Technology And Equipment Business

September 30, 2024
Honeywell

  • $1.81 billion acquisition bolsters Honeywell’s energy transition capabilities through end-to-end offering for customers worldwide
  • Enhances Honeywell’s Energy and Sustainability Solutions business with addition of ~475 skilled employees focused on driving the energy transition
  • Creates new opportunities for diversified growth and innovation in Honeywell’s aftermarket services and software

 

CHARLOTTE, N.C., Sept. 30, 2024 /PRNewswire/ — Honeywell (NASDAQ: HON) today announced the completion of its acquisition of Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction. This further expands the comprehensive suite of top-tier solutions Honeywell offers its customers for managing their energy transformation journey.

Honeywell’s full-service solution now provides customers a holistic offering that encompasses natural gas pre-treatment, state-of-the-art liquefaction and digital automation technologies unified under the Honeywell Forge and Experion platforms, as well as the addition of Air Products’ coil-wound heat exchangers (CWHE) technology.

“The acquisition of Air Products’ LNG process technology and equipment business strengthens Honeywell’s energy transition portfolio and will enable our customers to manage their liquefied natural gas assets with greater efficiency and reliability,” said Ken West, President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment. “With the integration of the LNG business, we will be able to provide a greater level of energy transition management from beginning to end through a full spectrum of scalable solutions.”

This is the fourth acquisition Honeywell has closed in 2024 as part of its disciplined capital deployment strategy. The company is focused on high-return acquisitions that will drive future growth across its portfolio, which is aligned with the three compelling megatrends of automation, the future of aviation and energy transition. Most recently, Honeywell completed its acquisition of CAES in August 2024, which further enhances its defense technology solutions across land, sea, air and space.

We describe certain 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. 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, 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 industriatime.

 

SourceHoneywell

EMR Analysis

More information on Honeywell: See the full profile on EMR Executive Services

More information on Vimal Kapur (Chairman and Chief Executive Officer, Honeywell): See the full profile on EMR Executive Services

More information on Greg Lewis (Senior Vice President and Chief Financial Officer, Honeywell till 01.02.2025 + Senior Vice President, Honeywell Accelerator and Senior Advisor to the Chairman and Chief Executive Officer, Honeywell as from 01.02.2025): See the full profile on EMR Executive Services

More information on Michal Stepniak (Vice President, Corporate Finance, Honeywell till 01.02.2025 + Senior Vice President and Chief Financial Officer, Honeywell as from 01.02.2025): See the full profile on EMR Executive Services

More information on Greg Turner (Chief Technology Officer, Building Automation Segment, Honeywell): See the full profile on EMR Executive Services

More information on Honeywell Energy and Sustainability Solutions Segment (ESS): https://ess.honeywell.com/us/en/home + With a decades-long focus on sustainability, Honeywell enables the energy evolution, improves resiliency and efficiency, reduces emissions, and facilitates the circular economy. Honeywell’s expertise in this area will continue helping solve the world’s toughest challenges across our end markets.

More information on Ken West (President and Chief Executive Officer, Energy and Sustainability Solutions Segment (ESS), Honeywell): See the full profile on EMR Executive Services

More information on Honeywell Connected Enterprise (HCE) + Honeywell Forge: https://www.honeywell.com/us/en/honeywell-forge + Honeywell Connected Enterprise (HCE) is transforming the way the world works, solving our customers’ toughest challenges through relentless innovation that is grounded in a heritage of invention. Honeywell founded HCE to develop Honeywell Forge, software that securely unites OT and IT data to make better decisions and improve operational performance. We help some of the world’s largest companies transform the way they work. Helping them become more sustainable, more efficient and more cybersecure.

More information on Forge by Honeywell: https://www.honeywell.com/us/en/honeywell-forge + Honeywell Forge is Enterprise Performance Management Software-as-a-Service, purpose-built on a native edge-to-cloud, data-driven architecture to accelerate digital transformation.

More information on Suresh Venkatarayalu (Senior Vice President, Chief Technology Officer and President, Honeywell Connected Enterprise, Honeywell): See the full profile on EMR Executive Services

More information on Experion® Solution Suites by Honeywell: https://process.honeywell.com/us/en/solutions/experion-solution-suites + With Honeywell’s extensive experience in process control and automation, coupled with our strategic partnerships with leading process technology licensors, we are leading the charge toward the next generation of digital refineries. Experion Solution Suites (ESS) offers a comprehensive set of pre-configured, automation packages, covering every aspect of your operation.

More information on Honeywell Aerospace Technologies Segment (AT): https://aerospace.honeywell.com/us/en/about-us/about-honeywell-aerospace + Products and services from Honeywell Aerospace Technologies are found on virtually every commercial, defense and space aircraft. The Aerospace Technologies business unit builds aircraft engines, cockpit and cabin electronics, wireless connectivity systems, mechanical components and more. Its hardware and software solutions create more fuel-efficient aircraft, more direct and on-time flights and safer skies and airports.

More information on Jim Currier (President and Chief Executive Officer, Aerospace Technologies Segment (AT), Honeywell): See the full profile on EMR Executive Services

More information on CAES Systems Holdings LLC by Honeywell Aerospace Technologies Segment (AT) by Honeywell: https://caes.com/ + CAES pioneers advanced electronics that underpin many of the world’s most critical missions. We design, engineer, test, and manufacture advanced electronic solutions for the U.S. aerospace and defense industry. From inception and development engineering, to full-rate production and sustainment, we work closely with customers as partners throughout the program lifecycle.

We partner with customers, co-investing in technology development and program assets to enable them to win their most strategically important programs. 

Headquartered in Arlington, Virginia, with locations across the country, CAES is comprised of talented individuals who like to solve complex problems. Our employees are mission-driven and proud of the world-class products they manufacture. As a people-focused organization, we empower our employees to drive excellence in all that we do.

Headquartered in Arlington, Va., CAES (formerly known as Cobham Advanced Electronic Solutions) has 13 facilities in North America, including highly automated manufacturing facilities with fully automated test and tuning processes. The acquisition will add approximately 2,200 employees and a deep bench of RF engineering talent.

More information on Mike Kahn (President and Chief Executive Officer, CAES, Honeywell): See the full profile on EMR Executive Services

 

More information on Air Products: https://www.airproducts.com/ + Air Products (NYSE:APD) is a world-leading industrial gases company in operation for over 80 years focused on serving energy, environmental, and emerging markets. The Company has two growth pillars driven by sustainability. Air Products’ base business provides essential industrial gases, related equipment and applications expertise to customers in dozens of industries, including refining, chemicals, metals, electronics, manufacturing, and food. The Company also develops, engineers, builds, owns and operates some of the world’s largest clean hydrogen projects supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. Additionally, Air Products is the world leader in the supply of liquefied natural gas process technology and equipment, and provides turbomachinery, membrane systems and cryogenic containers globally. 

The Company had fiscal 2023 sales of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of over $50 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products’ higher purpose to create innovative solutions that benefit the environment, enhance sustainability and reimagine what’s possible to address the challenges facing customers, communities, and the world.

More information on Seifi Ghasemi (Chairman, President and Chief Executive Officer, Air Products): https://www.airproducts.com/company/leadership 

 

 

 

 

 

EMR Additional Notes:

  • Liquefied Natural Gas (“LNG”):
    • LNG fuel, or liquefied natural gas, is a natural gas converted to liquid form through liquefaction. During this process, natural gas is cooled at low temperatures until it turns into a liquid, and the volume of gas is reduced by approximately 600 times.
    • When LNG is returned to its gaseous state, it is used across the residential, commercial and industrial sectors for purposes as diverse as heating, cooking, generating electricity and manufacturing a wide variety of products. LNG is also used as a fuel for heavy-duty and other vehicles.
    • Differences between LNG & LPG (Also known as propane or butane):
      • Light pressure is used to liquefy LPG, while LNG is liquefied cryogenically, i.e. through exposure to extremely low temperatures
      • LPG is stored, shipped and transported in tanks or cylinders, whereas LNG is stored and shipped in purpose built cryogenic tanks. Pipelines are usually used to transport LNG.
      • The need for cryogenic storage, coupled with infrastructure requirements such as production plants, dispensing stations and pipeline transport facilities, means LNG is not a viable option in many developing nations.

 

  • Geothermal Heating, Heat Pumps, Chillers, Hydronics & Heat Exchangers:
    • Geothermal heating and cooling systems take advantage of the stable temperature underground using a piping system, commonly referred to as a “loop.” Water circulates in the loop to exchange heat between your home, the ground source heat pump, and the earth, providing geothermal heating, cooling, and hot water at remarkably high efficiencies.
    • Heat pumps use electricity to transfer heat from a cool space to a warm space, making the cool space cooler and the warm space warmer. During the heating season, heat pumps move heat from the cool outdoors into your warm house.  During the cooling season, heat pumps move heat from your house into the  outdoors. Because they transfer heat rather than generate heat, heat pumps can efficiently provide comfortable temperatures for your home.
    • The only difference between a heat pump and a chiller is that one is designed to remove heat from a space or process stream, making it cooler and rejecting heat to the environment, while the other is designed to extract heat from the environment and use it to provide useful heat.
    • Hydronics are systems of heating or cooling that involves transfer of heat by a circulating fluid (such as water or vapor) in a closed system of pipes.
    • Heat exchangers are used to transfer heat from one medium to another. These media may be a gas, liquid, or a combination of both. The media may be separated by a solid wall to prevent mixing or may be in direct contact. Heat exchangers are required to provide heating and/or cooling to meet a process requirement.
    • In HVAC, Heat exchangers are used to transfer heat between the indoor and outdoor air streams while keeping them physically separated as a means of cooling the indoor air. In addition, heat exchangers can also be used to heat indoor air. These systems are called heat pumps.
  • Coil-Wound Heat Exchanger (CWHE):
    • Carefully spaced helices of small-diameter tubes of equal length through which the high-pressure streams flow. They are wrapped around a core cylinder, called the mandrel, in a number of layers and enclosed in an insulated cylindrical jacket, called the shell. A heat carrier is pumped around a circuit between the coils, the air heats the liquid in the extract air coil and the liquid, in turn, heats the air in the supply air coil.