Quick Overview
- Brady Corporation is acquiring Honeywell’s Productivity Solutions and Services (PSS) division for $1.4 billion in an all-cash transaction
- The PSS unit recorded approximately $1.1 billion in sales during 2025 and has a workforce of about 3,000 employees worldwide
- Transaction valuation represents roughly 8x the division’s 2025 EBITDA
- This divestiture aligns with Honeywell’s strategy to streamline its portfolio in preparation for separating its Aerospace division in the third quarter of 2026
- Brady anticipates the acquisition will boost adjusted diluted EPS by double digits in year one, with projected annual cost savings of $25 million achievable within three years
On April 20, 2026, Honeywell (HON) revealed it has entered into an agreement to transfer its Productivity Solutions and Services business unit to Brady Corporation (BRC) through a $1.4 billion all-cash transaction.
The PSS division specializes in manufacturing mobile computing devices, barcode scanning equipment, and printing technologies primarily serving warehouse and logistics industries. The business generated approximately $1.1 billion in total revenue during 2025.
The acquisition carries a $1.4 billion valuation, translating to approximately 8 times the division’s 2025 EBITDA performance. Subject to regulatory clearance, the transaction is projected to finalize during the latter half of 2026.
Honeywell International Inc., HON
Vimal Kapur, CEO of Honeywell, described the divestiture as an important milestone in the company’s “multi-year portfolio transformation strategy.” The organization continues to advance its strategy to separate into two distinct publicly traded entities — one dedicated to Aerospace operations, the other to Automation technologies.
The planned Aerospace separation remains scheduled for the third quarter of 2026.
This transaction represents the latest in a series of strategic divestitures for Honeywell. The corporation previously sold its Personal Protective Equipment division in 2024 and separated its Advanced Materials business as Solstice Advanced Materials (SOLS) through a spinoff completed in October 2025.
Additionally, Honeywell continues evaluating strategic alternatives for its Warehouse and Workflow Solutions operations, which includes the Intelligrated and Transnorm product lines.
Strategic Expansion for Brady
For Brady Corporation, this acquisition represents a substantial strategic expansion. The Milwaukee-headquartered company, known for producing identification labels, signage, and workplace safety products, is leveraging the PSS transaction to enter the data capture, mobile computing, and workflow automation markets.
Brady projects the deal will deliver double-digit accretion to adjusted diluted earnings per share during the first complete year following transaction completion. The company has established a target of achieving at least $25 million in annual cost synergies within a three-year timeframe.
Following the transaction’s financing, Brady’s pro forma net debt to EBITDA leverage ratio is expected to reach approximately 2.5x — a metric that investors will monitor carefully throughout the integration process.
Transaction Structure and Timeline
The deal 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 anticipated during the second half of 2026, contingent upon customary regulatory clearances and closing requirements.
The PSS business currently functions within Honeywell’s Industrial Automation segment. Following deal completion, it will transition to Brady’s organizational structure as a component of an expanded industrial productivity and safety platform.
Since 2023, Honeywell has disclosed approximately $14 billion in acquisition activity while simultaneously divesting non-strategic assets. The PSS transaction represents the most recent action in this continuing portfolio optimization initiative.
Brady’s purchase of PSS adds approximately 3,000 employees to its workforce and provides access to an established customer base spanning warehouse, logistics, and manufacturing industries.
The transaction remains subject to regulatory examination, with integration challenges and employee retention concerns identified as potential obstacles to achieving the anticipated synergy targets.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
