11:16 AM EST, 03/04/2025 (MT Newswires) -- Honeywell International ( HON ) announced plans on Tuesday to buy pump and gas compressor maker Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash.

The per-cash consideration reflects roughly 14.5-times Sundyne's 2024 earnings before interest, taxes, depreciation and amortization on a tax-adjusted basis.

Sundyne makes pumps and gas compressors used in process industries. Honeywell ( HON ) expects the deal to enhance its energy and sustainability solutions segment and unlock growth for its universal oil products business.

"This acquisition will further enhance our dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals," Honeywell ( HON ) Chief Executive Vimal Kapur said in a statement. "Sundyne's vast installed base of top-of-the-line pumps and compressors will further strengthen Honeywell's ( HON ) brand in the process industry and create significant opportunities for us to continue expanding our aftermarket services business."

The acquisition is expected to be accretive to Honeywell's ( HON ) adjusted earnings per share in the first full year of ownership, and to sales growth and segment margins immediately. The combo will generate "material run-rate revenue synergies" with Honeywell UOP's process licensing and modular business, the companies said. The acquisition is projected to close in the second quarter, subject to regulatory approvals.

Sundyne will add roughly 1,000 skilled employees to Honeywell ( HON ) and bring significant recurring aftermarket revenue, the companies announced in a joint statement.

"There are numerous benefits that we can achieve together with Honeywell ( HON ) that will accelerate growth and improve efficiency for customers," said Sundyne CEO Mary Zappone.

Sundyne's diverse end markets, products, and optimized operations set it up for "sustained, above-market growth," said Dan Zamlong, managing director at Warburg Pincus.

Last month, Honeywell ( HON ) announced plans to separate its automation and aerospace businesses and then spin off each one into publicly traded companies. This comes after it began a process to spin off its advanced materials business.

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