TLDR
- Honeywell has struck a deal to divest its Productivity Solutions and Services (PSS) division to Brady Corporation for $1.4 billion cash
- The PSS unit recorded approximately $1.1 billion in annual sales during 2025 with a workforce of about 3,000 employees worldwide
- Transaction pricing represents approximately 8x the division’s 2025 EBITDA multiple
- This divestiture aligns with Honeywell’s strategic portfolio streamlining efforts in advance of its Aerospace business separation scheduled for Q3 2026
- Brady projects the acquisition will boost adjusted diluted EPS by double digits in year one, with anticipated annual cost savings of $25 million achievable within three years
On April 20, 2026, Honeywell (HON) revealed it has entered into a definitive agreement to transfer 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 industrial printing technologies, primarily serving warehouse and supply chain operations. The business generated approximately $1.1 billion in sales throughout 2025.
The transaction values PSS at roughly 8x its 2025 EBITDA multiple. Closing is anticipated during the latter half of 2026, contingent upon receiving necessary regulatory clearances.
Honeywell International Inc., HON
CEO Vimal Kapur of Honeywell characterized the transaction as an important milestone in executing the company’s “multi-year portfolio transformation.” The industrial conglomerate continues advancing its strategy to separate into two distinct publicly traded entities — one concentrating on Aerospace operations, the other on Automation technologies.
The planned Aerospace separation remains scheduled for completion in Q3 2026.
This represents another chapter in Honeywell’s ongoing divestiture strategy. The corporation previously sold its Personal Protective Equipment division in 2024 and separated its Advanced Materials business as Solstice Advanced Materials (SOLS) through a spin-off transaction in October 2025.
Honeywell continues evaluating strategic alternatives for its Warehouse and Workflow Solutions operations, which encompass the Intelligrated and Transnorm product lines.
Brady Corporation’s Strategic Move
For Brady, this acquisition represents a substantial strategic expansion. The Milwaukee-headquartered manufacturer, known for identification labels, signage, and workplace safety products, is leveraging the PSS transaction to enter the data capture, mobile computing, and workflow automation markets.
Brady anticipates the transaction will deliver double-digit accretion to adjusted diluted earnings per share during the first complete fiscal year following completion. Management has established a target of realizing at least $25 million in annual cost synergies within a three-year timeframe.
The acquisition will elevate Brady’s pro forma net debt to EBITDA leverage ratio to approximately 2.5x post-financing — a metric that market participants will monitor closely throughout the integration process.
Transaction Structure and Timeline
The agreement is structured as an all-cash purchase, with Centerview Partners serving as Honeywell’s financial advisor. Legal representation includes Kirkland & Ellis, Baker McKenzie, and Womble Bond Dickinson.
Transaction completion 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 closure, the business will function under Brady’s corporate structure as a component of an expanded industrial productivity and workplace safety platform.
Since 2023, Honeywell has disclosed approximately $14 billion in acquisition transactions while concurrently divesting non-strategic assets. The PSS divestiture represents the latest execution of this comprehensive portfolio repositioning initiative.
Brady’s purchase of PSS adds approximately 3,000 employees and an established customer base spanning warehouse, logistics, and industrial manufacturing verticals.
The transaction requires regulatory examination, with integration challenges and employee retention concerns identified as potential obstacles to achieving the forecasted synergy targets.
