10:05 AM EST, 11/22/2024 (MT Newswires) -- Honeywell International ( HON ) agreed to sell its personal protective equipment business to a portfolio company of private equity firm Odyssey Investment Partners in an all-cash deal of about $1.33 billion, as the industrial conglomerate continues to increase focus on core operations.

The company will offload the business, which is part of the industrial automation segment, to Protective Industrial Products. The business has around 5,000 employees and currently operates 20 manufacturing sites and 17 distribution facilities across the US, Mexico, Europe, North Africa, Asia Pacific and China.

The transaction is expected to be completed in the first half of next year, the companies said in separate statements. Honeywell ( HON ) will retain its gas detection portfolio within the industrial automation business.

"As we continue to simplify and optimize Honeywell's ( HON ) portfolio, the sale of the PPE business will enable us to further strengthen our core business in alignment with our three compelling megatrends," Honeywell ( HON ) Chief Executive Vimal Kapur said in a statement.

The company is seeking to increase its focus on automation, aviation and energy transition. Honeywell ( HON ) has completed a number of acquisitions over the past 12 months to support these areas, including Carrier Access Solutions, Civitanavi, CAES and Air Products and Chemicals' (APD) liquefied natural gas business.

"The combination of today's announcement, with the strategic acquisitions we have made over the past year, positions us to continue to drive profitable growth and strong cash generation while creating compelling long-term value for our shareowners," according to Kapur.

Last week, activist investor Elliott Investment Management disclosed a more than $5 billion investment in Honeywell ( HON ) and urged the company to split into two standalone entities to separate its aerospace and automation businesses. Honeywell ( HON ) disclosed plans in October to spin off its advanced materials business into a separate publicly traded company.

"We are excited to support (Protective Industrial Products) in its continued growth through this transformational acquisition," Odyssey's senior managing principal, Craig Staub, said in a separate statement. "We are confident in the (Protective Industrial Products) leadership team's ability to execute a seamless integration process and continue scaling the growing PIP platform."

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