Honeywell has announced that it has agreed to acquire Sundyne from private equity firm Warburg Pincus for US$2.16 billion.
Sundyne is a prominent player in designing, manufacturing, and providing aftermarket support for advanced pumps and gas compressors in process industries. Incorporating Sundyne’s specialized equipment will bolster Honeywell’s Energy and Sustainability Solutions (ESS) business segment, enabling it to promote innovation and improve efficiency while meeting essential energy security requirements globally.
Based in Arvada, Colorado, and with multiple locations worldwide, Sundyne employs around 1,000 talented individuals and benefits from substantial ongoing aftermarket revenue due to its large installed base. The integration will create significant long-term revenue synergies with Honeywell UOP’s process licensing, modular capabilities, and worldwide sales presence.
“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 of Warburg Pincus.
The acquisition is expected to immediately support Honeywell’s sales growth and segment margin and adjust EPS in the first full year of ownership.
The acquisition follows Honeywell’s recent announcement of the planned separation of its Aerospace Technologies business and the previously announced spin of Advanced Materials. This 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 several 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 agreed 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.
