Honeywell announces sale of PPE business

Honeywell has agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products (PIP) for $1.325 billion in an all-cash transaction, according to a company announcement.

The sale is part of Honeywell’s strategy to streamline its portfolio and focus on three core areas: automation, the future of aviation and energy transition.

The PPE business operates globally under Honeywell’s Industrial Automation segment, offering safety equipment for industrial workers.

It employs approximately 5,000 people and operates 20 manufacturing sites and 17 distribution sites worldwide.

Honeywell will retain its gas detection portfolio within its Industrial Automation division.

PPE business set for growth under new ownership

PIP, a global supplier and manufacturer of personal protective equipment, is backed by Odyssey Investment Partners, a private equity firm with experience in scaling industrial businesses.

Vimal Kapur, Chairman and CEO of Honeywell, said: “Over the last five years, our PPE business has experienced operational improvements and expanded its global reach.

“Now, under PIP, the business will accelerate its growth into new markets and products.”

The divestiture aligns with Honeywell’s broader plan to exit non-core businesses, such as the sale of its Lifestyle and Performance Footwear Business in 2021, and focus on areas with higher growth potential.

Honeywell’s strategy focuses on core megatrends

Honeywell has been implementing a strategy of portfolio optimisation, concentrating on automation, aviation, and energy transition.

In the past year, the company completed four strategic acquisitions and announced plans to spin off its Advanced Materials business into a standalone entity by 2026.

Kapur said: “This sale strengthens our ability to focus on strategic acquisitions and drive long-term value creation for shareholders.”

Honeywell’s Q3 2024 earnings report highlighted its intent to divest the PPE business, further aligning with its vision of prioritising high-return opportunities.

Transaction timeline and conditions

The transaction is expected to close in the first half of 2025, pending customary regulatory approvals and closing conditions.

Honeywell’s divestiture reflects its ongoing effort to refine its portfolio while pursuing targeted growth initiatives.

Mike Garceau, President and CEO of Honeywell Personal Protective Equipment, said: “Joining the PIP family offers an exciting opportunity to build on our legacy of innovation and continue providing safety solutions to our customers.”

Honeywell divests PPE business to streamline portfolio: summary

Honeywell announced the sale of its Personal Protective Equipment (PPE) business to Protective Industrial Products (PIP) for $1.325 billion in cash.

The PPE division operates under Honeywell’s Industrial Automation segment, employing 5,000 people across 20 manufacturing and 17 distribution sites worldwide.

The divestiture aligns with Honeywell’s strategy to focus on automation, aviation, and energy transition while optimising its portfolio.

PIP, supported by Odyssey Investment Partners, plans to expand the PPE business into new markets and product categories.

The transaction, expected to close in the first half of 2025, builds on Honeywell’s recent efforts to refine its business structure, including four acquisitions in 2023 and the planned spin-off of its Advanced Materials division by 2026.