Honeywell – Honeywell to Sell Personal Protective Equipment Business to Protective Industrial Products
- Sale enables Honeywell to further simplify and optimize its businesses in alignment with three powerful megatrends: automation, the future of aviation and energy transition
- Positions Honeywell to continue to deliver profitable growth and strong cash generation, creating compelling long-term value for shareowners.
CHARLOTTE, N.C., Nov. 22, 2024 /PRNewswire/ — Honeywell (NASDAQ: HON) announced today that it has agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, Inc. (“PIP”), a portfolio company of Odyssey Investment Partners, for $1.325 billion in an all-cash transaction. The transaction will enable Honeywell to further simplify its portfolio in order to accelerate value creation in alignment with three compelling megatrends: automation, the future of aviation and energy transition.
Honeywell’s PPE business, part of the Industrial Automation (IA) business portfolio, is a global provider of PPE for industrial workers, offering a comprehensive and differentiated product portfolio that serves a diverse and resilient set of growing customers and end markets.
This announcement follows the divestiture of Honeywell’s Lifestyle and Performance Footwear Business to Rocky Brands for $230 million in 2021 and completes Honeywell’s exit from PPE. Honeywell will retain its gas detection portfolio within the Industrial Automation segment.
The PPE business has approximately 5,000 employees and a streamlined global manufacturing and distribution footprint that allows for cost-effective production, close proximity to customers and optimized lead times. It currently operates 20 manufacturing sites and 17 distribution sites across the U.S., Mexico, Europe, North Africa, Asia Pacific and China.
“Over the last five years, our PPE business has experienced significant wins as a result of its operational improvement initiatives, footprint rationalization and quick adaptation to global needs following the pandemic. Now with this transaction, the business will be positioned to accelerate its growth trajectory as it benefits from Odyssey’s historic investing in the PPE sector and scaling similar businesses to expand into new products, geographies and end markets,” said Vimal Kapur, Chairman and CEO of Honeywell.
Kapur added, “As we continue to simplify and optimize Honeywell’s portfolio, the sale of the PPE business will enable us to further strengthen our core business in alignment with our three compelling megatrends. The combination of today’s announcement, with the strategic acquisitions we have made over the past year, positions us to continue to drive profitable growth and strong cash generation while creating compelling long-term value for our shareowners.”
PIP is a global supplier and manufacturer of PPE products. Odyssey Investment Partners is a leading private equity investment firm with a 25-year history of transforming industrial and business services companies into more efficient and diversified businesses with strong growth profiles.
“As a leader in personal protective equipment, we have a uniquely talented team and a rich legacy of award-winning innovations that position us for continued long-term success delivering a full suite of head-to-toe safety solutions to our longstanding customer base,” said Honeywell Personal Protective Equipment President and CEO Mike Garceau. “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 transaction follows Honeywell’s recent disclosure in its Q3 2024 earnings of its intention to sell the PPE business. It also aligns with Honeywell’s commitment to optimize its portfolio by taking action to divest from non-core lines of business while pursuing high-return acquisitions that will drive future growth in alignment with its three powerful megatrends. The sale of the PPE business builds on Honeywell’s completion of four strategic acquisitions over the past 12 months as part of its disciplined capital deployment strategy. In addition, Honeywell announced a plan last month to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026.
The transaction, which is expected to be completed in the first half of 2025, is subject to customary closing conditions.
SourceHoneywell
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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 Honeywell Industrial Automation Segment (IA): With a deep history in industrial automation that spans more than five decades, Honeywell enables process industry operations, creates world-class sensor technologies, automates supply chains, makes warehouses smarter, and improves worker safety. This combination build on our core strengths in controls and automation technologies, deliver better commercial outcomes for our customers, and enhance our growth.
More information on Lucian Boldea (President and Chief Executive Officer, Industrial Automation Segment (IA), Honeywell): See the full profile on EMR Executive Services
More information on Honeywell Personal Protective Equipment Business (part of the Sensing and Safety Technologies Business Unit within the Industrial Automation (IA) Segment): https://ppe.honeywell.com/us/en/home + Honeywell is the worldwide leader in safety, comfort and security. We have united the most respected offerings in the safety industry to deliver an unparalleled, best-in-class retail line of personal protective equipment focused on quality and performance. Our ongoing commitment to innovation, combined with our worldwide engineering and R&D resources, have positioned us to be your premier source for the most complete solutions available. Our singular focus is to be your best safety partner, today and in the future.
The PPE business has approximately 5,000 employees and a streamlined global manufacturing and distribution footprint. It currently operates 20 manufacturing sites and 17 distribution sites across the U.S., Mexico, Europe, North Africa, Asia Pacific and China.
More information on Mike Garceau (President and Chief Executive Officer, Honeywell Personal Protective Equipment, Sensing See the full profile on EMR Executive Services
More information on Honeywell Advanced Materials until 31.12.2023: https://advancedmaterials.honeywell.com/us/en + Honeywell Advanced Materials plays a crucial role in advancing industries worldwide through diverse applications, revolutionary inventions, and pioneering technologies. Our science and technology experts create solutions that help solve our customer’s needs today and into the future.
As part of the Honeywell Performance Materials and Technologies business group, our materials are used in various industrial applications. While these applications are diverse, the consistent theme is the innovation and quality, helping our customers collaborate with their own stakeholders to create new value in their own offerings.
- The world’s leading businesses and monetary institutions rely on Honeywell’s Authentication Technologies for brand protection, currency and document security needs using a unique portfolio of covert luminescent pigments, chemical taggants and optoelectronic detection systems. Our Lumilux™ fluorescent pigments and industrial luminescent pigments were originally development for authentication applications under the Riedel-de-Haën brand.
- Under the Riedel-de-Haën Honeywell Fine Chemicals brands, we have produced high purity fine chemicals for over 200 years. Our industrial customers use these products in energy and battery applications and catalysts and catalyst precursors.
- Honeywell Fine Chemicals has also been supplying flux for brazing aluminum for more than two decades. Our high-quality brazing fluxes, based on Potassium Fluoroaluminate and Cesium Fluoroaluminate, are available in a range of formats, including paints, powders, suspensions, and blends.
- Performance Additives offer synthetic waxes and polymers under the ACumist®, A-C®, AClyn®, Cohesa®, NduroMatt™, Rheolub® and Titan™ brand names. Honeywell is one of the world’s leading manufacturers of low-molecular-weight polyethylene waxes for inks, paints, coatings, plastics, adhesives or rubber and asphalt. Our performance additives help improve performance, cost savings, and manufacturing efficiency.
- Honeywell Electronic Materials is a leading supplier to the worldwide electronics industry, providing critical materials that enhance the performance and productivity of your manufacturing processes. Continuous investment in advanced research, worldwide strategic collaborations, and dedication to working closely with our customers have resulted in our innovative products serving the critical needs of manufacturers in the semiconductor and display industries.
- Honeywell developed Spectra® fiber, a new type of synthetic yarn, and we were one of the first to offer extended chain, high modulus polyethylene fibers. Spectra advanced fibers and composites are used to protect law enforcement and military personnel, complete deep water installations in the oil and gas industry, and help fishermen secure more prized catches. In addition to Spectra fiber, we manufacture Spectra Shield®, Gold Shield® and Gold Flex® ballistic composite materials. Honeywell maintains an active advanced fibers and composites research and development program to inform the next generation of high-performance materials technology.
- Through our Solstice® brand of low-global-warming aerosols and performance fluids, we are providing responsible replacements for hydrocarbons, HCFCs and HFCs. Solstice-branded products, used for vapor degreasing, cleaning and industrial aerosols, are based on Honeywell’s hydrofluoroolefin technology, and are designed to help customers lower their carbon footprint without sacrificing end product performance.
More information on Honeywell Energy and Sustainability Solutions Segment (ESS) as from 01.01.2024: 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, Honeywell Advanced Materials, Honeywell until 31.12.2023 + President and Chief Executive Officer, Energy and Sustainability Solutions Segment (ESS), Honeywell as from 01.01.2024): See the full profile on EMR Executive Services
More information on Jeff Dormo (President, Honeywell Advanced Materials, Honeywell): See the full profile on EMR Executive Services
More information on Odyssey Investment Partners: https://www.odysseyinvestment.com/ + Odyssey is a top private equity firm with a rigorous approach to thematic investing in industrial and business services markets. Through our Buy, Build and Integrate approach, we aim to transform middle-market companies into highly efficient, diversified leaders with attractive long-term growth profiles. Since 1997, we have raised over $8.2 billion of private equity capital that has been invested in over 50 platform companies that have completed approximately 300 add-on acquisitions. We are currently investing out of our sixth fund, with $3.25 billion in capital commitments.
More information on Brian Kwait (Chief Executive Officer, Odyssey Investment Partners): https://www.odysseyinvestment.com/team/?page=2 + https://www.linkedin.com/in/brian-kwait-60a0ab247/
More information on Protective Industrial Products Inc. (PIP) by Odyssey Investment Partners: https://us.pipglobal.com/en/ + PIP Global is a leading supplier of Hand Protection and Personal Protective Equipment to wholesalers and distributors worldwide. With locations throughout North and South America, Europe and Asia, PIP’s mission of “Bringing the Best of the World to You®” is fulfilled everyday by providing best-in-class safety products worldwide.
- Long History of 35+ Years in personal protection
- Workforce of over 1700+ Dedicated and inspiring employees
- Wide selection of 20,000+ Products and styles available
- $1 Billion in annual gross revenue
- Supported by 12k Happy customers
- 2 Million Square feet of distribution centers
More information on Joseph Milot (Founder and Executive Chairman, PIP, Odyssey Investment Partners): https://www.linkedin.com/in/joseph-milot-3b7bba25/
More information on Curt Holtz (President and Chief Executive Officer, PIP, Odyssey Investment Partners): https://us.pipglobal.com/en/about-us/news-and-events/?type=pr&nID=157 + https://www.linkedin.com/in/curt-holtz-45a546163/
More information on Rocky Brands, Inc: https://www.rockybrands.com + Since its inception in 1932, Rocky Brands, Inc. (NASDAQ: RCKY) has grown into a global enterprise with distribution to more than 70 countries.
The Global Headquarters, located in the historic town of Nelsonville, OH employs about 400 residents, with more than 2,800 employees worldwide, including offices in Dedham, MA, our own factory in Rock Island, IL and several international locations. The global Rocky Brands team operate in offices and facilities in Canada, China, Australia, United Kingdom, Puerto Rico, Dominican Republic and more. At Rocky Brands, Inc., we design, develop, manufacture and market premium quality footwear and apparel. We are focused on growing our brands through product innovation, targeted sponsorships and social interaction with our consumers. We market compelling brands with innovative product lines that enhance consumers’ life experiences, resulting in a lifetime loyalty to Rocky Brands, Inc.
The Rocky Brands family of brands includes Rocky®, Georgia Boot®, Durango®, The Original Muck Boot Company®, XTRATUF®, Ranger® and Lehigh Outfitters®.
Our vision is to become a global leader in the apparel and footwear markets with increasingly profitable organic sales growth.
More information on Jason Brooks (President and Chief Executive Officer, Rocky Brands, Inc): https://investors.rockybrands.com/governance/officers-and-directors/default.aspx + https://www.linkedin.com/in/jason-brooks-0b174b9a/
EMR Additional Notes:
- PPE (Personal Protective Equipment):
- Specialized clothing or equipment worn by an employee for protection against injury or infection. The hazards addressed by protective equipment include physical, electrical, heat, chemicals, biohazards, and airborne particulate matter.
- PPE categories: eye and face protection, hand protection, body protection, respiratory protection, and hearing protection.
