Honeywell to acquire Sundyne for $2.16bn, boosting energy and industrial solutions

Honeywell (NASDAQ: HON) has announced a definitive agreement to acquire Sundyne from private equity firm Warburg Pincus in a $2.16 billion all-cash transaction. The deal, which values Sundyne at approximately 14.5 times its 2024 EBITDA, is expected to enhance Honeywell’s energy solutions portfolio, strengthen its presence in industrial equipment manufacturing, and drive expansion in aftermarket services.

Sundyne, a recognized leader in pumps and compressors, provides mission-critical equipment for industries including refining, petrochemicals, liquefied natural gas (LNG), and clean and renewable fuels. By integrating Sundyne’s high-performance industrial equipment with its existing technologies, Honeywell aims to reinforce its Energy and Sustainability Solutions (ESS) business segment, improving efficiency, reliability, and sustainability for customers.

The acquisition is projected to be immediately accretive to Honeywell’s sales growth and segment margins, while also contributing to adjusted earnings per share (EPS) in the first full year of ownership. The deal is expected to close in Q2 2025, subject to regulatory approvals and customary closing conditions.

What Does Sundyne Bring to Honeywell’s Industrial Equipment Portfolio?

Sundyne specializes in highly engineered pumps and gas compressors, serving key industries where operational efficiency and reliability are paramount. Its installed base in energy production, chemical processing, and industrial gas applications makes it a valuable addition to Honeywell’s industrial equipment portfolio.

By integrating Sundyne’s advanced process technology solutions, Honeywell plans to enhance its automation, control systems, and predictive maintenance capabilities. The acquisition will allow Honeywell to leverage its Honeywell Forge industrial IoT platform to digitize and optimize Sundyne’s equipment, ensuring greater reliability and efficiency.

The expansion of Honeywell’s aftermarket services business is another strategic benefit. Sundyne’s recurring revenue from maintenance, parts, and support services complements Honeywell’s broader energy solutions strategy, allowing it to offer end-to-end solutions that improve equipment longevity and performance.

How Will Honeywell Benefit from Sundyne’s Market Position?

Sundyne has a strong market position in refining, LNG, and clean energy technologies, with a customer base spanning multiple industries. Its global footprint and extensive installed base provide Honeywell with an opportunity to expand its energy and industrial equipment solutions to a broader customer network.

With increasing global demand for energy security and sustainable fuel alternatives, the acquisition positions Honeywell to meet industry needs with more efficient and innovative equipment solutions. Honeywell’s ability to integrate Sundyne’s compressors and pumps into its energy solutions portfolio will support its growth in high-demand sectors, including green hydrogen, biofuels, and carbon capture technologies.

The deal also aligns with Honeywell’s strategy to strengthen its process licensing capabilities, allowing it to offer comprehensive industrial solutions that optimize production efficiency and reduce environmental impact.

What Role Will Honeywell Forge Play in Optimizing Sundyne’s Equipment?

Honeywell Forge, the company’s industrial IoT and automation platform, will be a key differentiator in the integration of Sundyne’s technology. By incorporating advanced digital monitoring, predictive analytics, and real-time equipment performance tracking, Honeywell aims to reduce downtime, improve operational efficiency, and lower maintenance costs for customers.

The combination of Honeywell Forge’s data-driven insights with Sundyne’s industrial pumps and compressors will allow customers to maximize equipment uptime and optimize energy use. Predictive maintenance solutions will ensure that potential failures are detected early, reducing unplanned outages and minimizing operational disruptions.

Honeywell’s investment in industrial automation and smart manufacturing technologies will further support Sundyne’s growth, helping industrial operators increase efficiency and enhance sustainability in their operations.

How Does This Acquisition Fit Into Honeywell’s Long-Term Growth Strategy?

The acquisition of Sundyne is part of Honeywell’s broader portfolio transformation strategy, aimed at expanding high-growth segments while streamlining its business operations. The company has been actively restructuring its portfolio to focus on high-margin, high-value industrial solutions, while divesting non-core assets.

Since late 2023, Honeywell has announced a series of strategic transactions, including the planned separation of its Aerospace Technologies business and the spin-off of Advanced Materials. The company has also pursued over $9 billion in accretive acquisitions, reinforcing its position in key markets such as automation, security solutions, and sustainable energy technologies.

Honeywell’s recent acquisitions include the Access Solutions business from Carrier Global, Civitanavi Systems, CAES Systems, and the LNG business from Air Products. At the same time, Honeywell is divesting its Personal Protective Equipment business, expected to close in the first half of 2025, as part of its commitment to optimizing capital allocation and enhancing shareholder value.

The Sundyne acquisition supports Honeywell’s commitment to deploying over $25 billion toward strategic investments, share repurchases, and high-return capital projects through 2025. By strengthening its industrial equipment portfolio and expanding aftermarket services, Honeywell aims to drive long-term revenue growth, margin expansion, and operational efficiencies.

What Are the Next Steps for Honeywell and Sundyne?

The transaction is expected to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions. Honeywell will work closely with Sundyne to ensure a smooth integration, maintaining business continuity for customers and partners.

Over the coming months, Honeywell will focus on leveraging Sundyne’s industrial equipment expertise, integrating its technology into Honeywell’s energy solutions portfolio, and expanding its aftermarket service offerings.

With the demand for energy-efficient and sustainable industrial solutions rising, the acquisition positions Honeywell as a leading provider of next-generation process equipment and automation technologies. The company’s emphasis on digital transformation, predictive maintenance, and process efficiency will be key to unlocking the full value of the acquisition.