Key Highlights
- Brady Corporation will acquire Honeywell’s Productivity Solutions and Services (PSS) division for $1.4 billion cash
- The PSS business recorded approximately $1.1 billion in annual revenue during 2025 with a workforce of 3,000 employees worldwide
- Transaction valuation stands at roughly 8x the division’s 2025 EBITDA
- Honeywell continues streamlining its business portfolio in preparation for the Aerospace unit separation scheduled for Q3 2026
- Brady anticipates the acquisition will boost adjusted diluted EPS by double digits in year one, targeting $25 million in yearly cost synergies by year three
On April 20, 2026, Honeywell (HON) revealed plans to transfer its Productivity Solutions and Services division to Brady Corporation (BRC) through a $1.4 billion all-cash transaction.
Honeywell $HON will sell its Productivity Solutions and Services business to Brady for $1.4B in cash. PSS did about $1.1B of 2025 revenue. The move is part of Honeywell’s portfolio simplification ahead of its planned aerospace spin in Q3 2026.
— Wall St Engine (@wallstengine) April 20, 2026
The PSS division specializes in manufacturing mobile computing devices, barcode scanning equipment, and printing technologies primarily serving warehouse and logistics operations. Annual revenue for the unit reached approximately $1.1 billion during 2025.
The acquisition carries a $1.4 billion valuation, representing approximately 8x the division’s 2025 EBITDA performance. Transaction completion is anticipated during the latter half of 2026, contingent upon regulatory clearance.
Honeywell International Inc., HON
Vimal Kapur, CEO of Honeywell, described the transaction as an important milestone in the company’s “multi-year portfolio transformation.” The corporation continues advancing toward its strategy of separating into two standalone publicly traded entities — one dedicated to Aerospace operations, the other centered on Automation technologies.
The planned Aerospace separation remains scheduled for Q3 2026.
This represents another step in Honeywell‘s recent divestiture activity. The corporation previously sold its Personal Protective Equipment division in 2024 and separated its Advanced Materials segment as Solstice Advanced Materials (SOLS) during October 2025.
Honeywell continues evaluating strategic alternatives for its Warehouse and Workflow Solutions operations, which include the Intelligrated and Transnorm product lines.
Strategic Expansion for Brady
The transaction represents a significant growth opportunity for Brady. The Milwaukee-headquartered producer of identification and safety products will leverage the PSS acquisition to enter the data capture, mobile computing, and workflow automation markets.
Brady projects the transaction will deliver double-digit accretion to adjusted diluted EPS during the first complete year following closure. Management has established a target of at least $25 million in annual cost synergies achievable within three years.
Following the deal’s financing, Brady’s pro forma net debt to EBITDA leverage ratio will reach approximately 2.5x — a metric that investors will monitor throughout the integration phase.
Transaction Structure and Schedule
The agreement follows an all-cash structure, with Centerview Partners providing financial advisory services to Honeywell. Legal representation includes Kirkland & Ellis, Baker McKenzie, and Womble Bond Dickinson.
Transaction closure is projected for H2 2026, dependent on customary regulatory approvals and standard closing requirements.
PSS currently operates within Honeywell’s Industrial Automation business segment. Following deal completion, the unit will function under Brady’s ownership as a component of an expanded industrial productivity and safety platform.
Since 2023, Honeywell has completed approximately $14 billion in strategic acquisitions while simultaneously divesting peripheral assets. The PSS divestiture represents the most recent action in this comprehensive portfolio restructuring initiative.
Brady’s PSS acquisition delivers approximately 3,000 additional employees and an established customer network spanning warehouse, logistics, and manufacturing industries.
Regulatory authorities will review the transaction, with integration challenges and employee retention concerns identified as potential obstacles to achieving the forecasted synergies.
