Honeywell (HON) Offloads PSS Division to Brady (BRC) in $1.4 Billion Cash Transaction

Key Highlights

• Brady Corporation is acquiring Honeywell’s Productivity Solutions and Services (PSS) division for $1.4 billion cash
• The PSS unit recorded approximately $1.1 billion in annual sales during 2025 with a global workforce of 3,000 employees
• Transaction valuation stands at roughly 8 times PSS’s 2025 EBITDA
• This divestiture aligns with Honeywell’s strategic portfolio optimization preceding the scheduled Aerospace separation in Q3 2026
• Brady anticipates double-digit accretion to adjusted EPS within year one, projecting $25 million in yearly cost savings by year three

On April 20, 2026, Honeywell (HON) disclosed a definitive agreement to divest its Productivity Solutions and Services division to Brady Corporation (BRC) in an all-cash transaction valued at $1.4 billion.

The PSS division specializes in manufacturing mobile computing devices, barcode scanning equipment, and printing technologies primarily serving warehouse and logistics sectors. The business unit generated approximately $1.1 billion in annual revenue during 2025.

The acquisition price represents an 8x multiple of PSS’s 2025 EBITDA performance. Subject to regulatory clearance, the transaction is anticipated to finalize during the latter half of 2026.

Honeywell International Inc., HON

CEO Vimal Kapur characterized the divestiture as a pivotal milestone in executing Honeywell’s “multi-year portfolio transformation strategy.” The industrial conglomerate continues advancing preparations to separate into two standalone publicly traded entities — an Aerospace-focused company and an Automation-centered organization.

The planned Aerospace separation remains scheduled for Q3 2026.

This transaction represents another chapter in Honeywell’s ongoing asset optimization program. The corporation previously divested its Personal Protective Equipment operations in 2024 and completed the spin-off of its Advanced Materials division as Solstice Advanced Materials (SOLS) during October 2025.

Additionally, Honeywell maintains active strategic evaluation of its Warehouse and Workflow Solutions operations, which encompasses the Intelligrated and Transnorm product lines.

Strategic Implications for Brady

For Brady Corporation, this acquisition marks a substantial portfolio expansion. The Milwaukee-headquartered manufacturer, known for identification solutions, signage, and safety products, leverages the PSS transaction to enter data capture technologies, mobile computing platforms, and workflow automation solutions.

Brady projects the acquisition will deliver double-digit accretion to adjusted diluted earnings per share during the initial twelve-month period following transaction closure. Management has established a target of at least $25 million in annualized cost synergies to be realized within a three-year timeframe.

Following deal financing, Brady’s pro forma net debt to EBITDA ratio is projected to reach approximately 2.5x — a metric that market participants will monitor throughout the integration phase.

Transaction Structure and Timing

The deal 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, contingent upon customary regulatory approvals and closing conditions.

PSS currently operates within Honeywell’s Industrial Automation business segment. Upon deal completion, the division will transition to Brady’s operational structure as a component of an expanded industrial productivity and safety platform.

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

Brady’s PSS acquisition incorporates roughly 3,000 employees and establishes customer relationships 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 projected synergy targets.