Honeywell Divests Personal Protective Equipment (PPE) Business to PIP: Strategic Shift for Core Growth
Honeywell has announced its decision to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products (PIP) for $1.325 billion in an all-cash transaction. This move aligns with Honeywell's broader strategy to streamline its portfolio, focusing on areas poised for long-term growth, such as automation, aviation, and energy transition.
A Strategic Move to Optimize Honeywell's Portfolio
Honeywell’s sale of the PPE business marks a key step in its strategy to simplify its operations and bolster its focus on high-growth sectors. As part of this move, Honeywell will continue to retain its gas detection portfolio within the Industrial Automation segment. The deal is expected to be finalized in the first half of 2025, and it is a natural extension of previous divestitures, including the 2021 sale of its Lifestyle and Performance Footwear Business.
The Strength of Honeywell's PPE Business
The PPE division, which employs around 5,000 people globally, has been a strong performer. The business offers a broad portfolio of safety products catering to a diverse and expanding customer base. Through operational improvements and footprint rationalization, Honeywell's PPE business was well-positioned for further growth. However, as the company re-aligns itself towards its megatrends, PPE no longer aligns with its long-term focus areas.
PIP's Strategic Acquisition and Growth Potential
Protective Industrial Products, a global PPE supplier, is set to benefit from Honeywell's strong operational legacy. Backed by Odyssey Investment Partners, PIP aims to accelerate its growth trajectory through this acquisition. With extensive expertise in scaling PPE businesses, PIP plans to expand into new geographies and markets, further cementing its position as a leader in worker safety.
Future Outlook for Honeywell
Looking ahead, Honeywell's divestiture of non-core business units is expected to free up capital, enabling the company to focus on its core strengths in automation, aviation, and energy sectors. This strategic simplification, combined with targeted acquisitions, will ensure that Honeywell is well-positioned to capitalize on its long-term growth drivers. As part of this initiative, Honeywell is also planning to spin off its Advanced Materials business into a publicly traded entity by 2025 or 2026.
