11:25 AM EDT, 07/10/2024 (MT Newswires) -- Honeywell International ( HON ) agreed to buy Air Products and Chemicals' ( APD ) liquefied natural gas process technology and equipment business for $1.81 billion, as the industrial conglomerate seeks to expand its energy transition portfolio.

The all-cash deal, which doesn't require any financing condition, is expected to close before the end of the year following regulatory approvals, the companies said in a statement Wednesday. Honeywell ( HON ) expects the acquisition to be immediately accretive to sales growth and segment margins and add to adjusted earnings on a per-share basis in the first year of full ownership.

Air Products and Chemicals' ( APD ) LNG process technology and equipment business includes design and manufacturing of coil-wound heat exchangers, which provide high natural gas throughput, according to the statement. The business is headquartered in Pennsylvania with about 475 employees and a manufacturing facility in Florida.

"This highly complementary acquisition will further strengthen our energy transition portfolio," Honeywell ( HON ) Chief Executive Vimal Kapur said. "Air Products' (coil-wound heat exchangers) technology will immediately expand our installed base -- creating new opportunities to compound growth in aftermarket services and digitalization."

The divestment of the business will allow Air Products to continue focusing on its core industrial gas business and related technology and equipment, as well as on delivering clean hydrogen at scale, according to Seifi Ghasemi, CEO of the industrial gases company. The LNG business will be in "good hands to advance as part of Honeywell's ( HON ) related portfolio of technologies," Ghasemi added.

The transaction marks Honeywell's ( HON ) fourth acquisition of the year. In June, the company agreed to buy aerospace and defense technology company CAES Systems for $1.9 billion and completed the acquisition of Carrier Global's (CARR) global access solutions business.

Earlier in the year, the company disclosed plans to buy Civitanavi Systems for about 200 million euros ($216.5 million).

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