Honeywell International Inc. ( HON ) has announced a $2.16 billion all-cash acquisition of Sundyne from Warburg Pincus (OTC:WPCBF).

The deal is valued at 14.5 times Sundyne’s 2024 EBITDA on a tax-adjusted basis. The acquisition expands Honeywell’s industrial equipment portfolio, enhancing its capabilities in high-performance pumps and gas compressors.

Headquartered in Arvada, Colorado, with global operations, Sundyne adds 1,000 skilled employees and strong recurring aftermarket revenue. Its integration is expected to drive significant synergies with Honeywell UOP’s process licensing, modular solutions, and global sales network.

The addition of Sundyne’s advanced technology strengthens Honeywell’s Energy and Sustainability Solutions (ESS) segment, improving efficiency and innovation in refining, LNG, and renewables. Honeywell Forge will further enhance reliability through IoT, while advanced R&D will accelerate pump and compressor innovation.

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Honeywell ( HON ) expects the acquisition to boost sales growth, segment margins, and adjusted EPS in its first full year. The move follows Honeywell’s planned separation of Aerospace Technologies and spin-off of Advanced Materials, forming three independent public companies as part of its portfolio transformation strategy.

Since December 2023, Honeywell ( HON ) has executed $9 billion in strategic acquisitions, including Access Solutions (Carrier Global), Civitanavi Systems, CAES Systems, and Air Products’ LNG business, while divesting its Personal Protective Equipment unit. It remains on track to exceed its $25 billion capital deployment goal by 2025.

The Sundyne acquisition is expected to close in Q2 2025, pending regulatory approvals and customary conditions.

“By combining Honeywell’s top-tier technology with Sundyne’s leading process industry solutions, this acquisition will further enhance our dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals,” said Vimal Kapur, Chairman and CEO of Honeywell ( HON ).

“Sundyne’s vast installed base of top-of-the-line pumps and compressors will further strengthen Honeywell’s brand in the process industry and create significant opportunities for us to continue expanding our aftermarket services business,” added Kapur.

Price Action: At the last check Tuesday, HON shares were trading higher by 0.11% at $212.25 premarket.

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