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 valued at roughly 8x the division’s 2025 EBITDA
- This divestiture aligns with Honeywell’s ongoing portfolio streamlining strategy preceding the anticipated Aerospace separation in Q3 2026
- Brady projects the acquisition will deliver double-digit accretion to adjusted diluted EPS within year one, alongside $25 million in yearly cost synergies by year three
On April 20, 2026, Honeywell (HON) revealed a definitive agreement to divest 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 mobile computing devices, barcode scanning equipment, and printing technologies designed primarily for warehouse and logistics operations. The business generated approximately $1.1 billion in annual sales during 2025.
At $1.4 billion, the acquisition represents approximately 8x the division’s 2025 EBITDA multiple. Completion of the transaction is anticipated during the latter half of 2026, contingent upon regulatory clearance.
Honeywell International Inc., HON
CEO Vimal Kapur described the divestiture as an important milestone in Honeywell’s “multi-year portfolio transformation.” The industrial conglomerate continues advancing plans to separate into two distinct publicly traded entities — one centered on Aerospace operations, the other on Automation technologies.
The Aerospace separation remains scheduled for Q3 2026.
This transaction represents another step in Honeywell’s ongoing portfolio optimization. The company previously divested its Personal Protective Equipment division in 2024 and separated its Advanced Materials operations as Solstice Advanced Materials (SOLS) during October 2025.
Honeywell continues evaluating strategic alternatives for its Warehouse and Workflow Solutions operations, which encompass the Intelligrated and Transnorm product lines.
Strategic Expansion for Brady
This acquisition represents a substantial growth opportunity for Brady. The Milwaukee-headquartered manufacturer of identification and safety solutions will expand into data capture technologies, mobile computing systems, and workflow automation capabilities through the PSS transaction.
Brady anticipates the acquisition will generate double-digit accretion to adjusted diluted earnings per share during the first complete fiscal year following closure. Management has established a target of at least $25 million in annual cost synergies to be realized within a three-year timeframe.
Following transaction financing, Brady’s pro forma net debt to EBITDA leverage ratio will reach approximately 2.5x — a metric that shareholders will monitor throughout the integration process.
Transaction Structure and Timeline
The all-cash transaction features Centerview Partners serving as financial advisor to Honeywell. Legal representation includes Kirkland & Ellis, Baker McKenzie, and Womble Bond Dickinson.
Transaction closure 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 completion, the division 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 activity while concurrently divesting non-strategic assets. The PSS transaction represents the latest development in this comprehensive portfolio realignment.
Brady’s PSS acquisition adds roughly 3,000 employees and establishes customer relationships spanning warehouse, logistics, and manufacturing industries.
The transaction remains subject to regulatory examination, with integration execution and employee retention identified as potential challenges to achieving the forecasted synergy benefits.
