CHARLOTTE, N.C., – Honeywell has announced that it has agreed to acquire Sundyne from private equity firm Warburg Pincus for $2.16 billion in an all-cash transaction. This represents approximately 14.5x 2024 EBITDA on a tax-adjusted basis. Sundyne is a leader in the design, manufacturing and aftermarket support of highly-engineered pumps and gas compressors used in process industries. The addition of Sundyne’s differentiated equipment will enhance the ability of Honeywell’s Energy and Sustainability Solutions (ESS) business segment to drive innovation and efficiency, while supporting critical energy security needs across the world.
Headquartered in Arvada, Colorado, with additional locations around the globe, Sundyne brings approximately 1,000 skilled employees and a significant recurring aftermarket revenue generated from an extensive installed base. The integration is expected to generate material run-rate revenue synergies with Honeywell UOP process licensing and modular capabilities, as well as a global sales reach.
“Through the integration of Sundyne’s differentiated suite of products and equipment, combined with the process automation capabilities of our Honeywell Forge technology, we will be able to offer our customers a more comprehensive portfolio of solutions to meet their evolving needs," said Ken West, president and CEO of Honeywell's ESS segment.
“We are incredibly proud to have partnered with the talented leadership team at Sundyne over the past five years. Sundyne's focus on diversifying its end markets, investing in innovative products and optimizing its operations has set a solid foundation for sustained, above-market growth,” said Dan Zamlong, managing director, Warburg Pincus.
The acquisition is expected to be immediately accretive to Honeywell's sales growth and segment margin, as well as to adjusted EPS in the first full year of ownership.
The acquisition follows Honeywell’s recent announcement of the planned separation of its Aerospace Technologies business along with the previously announced spin of Advanced Materials, which will result in three publicly listed industry leaders with distinct strategies and growth drivers. Throughout the separation execution process, Honeywell intends to continue its portfolio transformation efforts to enhance the value proposition of its businesses.
Since December 2023, Honeywell has announced a number of strategic actions to drive organic growth and simplify its portfolio. This includes approximately $9 billion of accretive acquisitions: the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems and the LNG business from Air Products. In addition, Honeywell entered into an agreement to divest its Personal Protective Equipment business, which is expected to close in the first half of 2025. Honeywell remains on pace to exceed its commitment to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions through 2025.
Honeywell’s acquisition of Sundyne is expected to close in Q2 2025, subject to customary closing conditions, including receipt of certain regulatory approvals.
