07:23 AM EDT, 07/10/2024 (MT Newswires) -- Honeywell ( HON ) has agreed to acquire Air Products and Chemicals' ( APD ) liquefied natural gas process technology and equipment business in a $1.81 billion all-cash deal, the companies said Wednesday.

The acquisition is expected to be accretive to Honeywell's ( HON ) sales growth and segment margin immediately and to adjusted earnings per share in the first full year of ownership, the companies said.

They added that the transaction is not subject to any financing conditions and is expected to close before the end of the year.

With the acquisition, Honeywell ( HON ) will be able to make an end-to-end offering that includes natural gas pre-treatment and liquefaction using digital automation technologies, according to the companies. Air Products will continue to focus on its industrial gas business, the companies added.

Shares of Air Products were 3.5% higher in recent premarket activity while Honeywell ( HON ) was 0.3% down.

Price: 210.01, Change: -0.59, Percent Change: -0.28