Honeywell to buy Air Products’ LNG business for $1.81 billion

US conglomerate Honeywell has agreed to acquire Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in an all-cash transaction.

LNG equipment specialist Air Products and Honeywell revealed the move in a statement on Wednesday saying the deal represents about 13x estimated 2024 Ebitda.

As a result of the acquisition, Honeywell will be able to offer customers a comprehensive solution which includes natural gas pre-treatment and liquefaction, utilizing digital automation technologies unified under the Honeywell Forge and Experion platforms, the statement said.

Air Products’ complementary LNG process technology and equipment business consists of a comprehensive portfolio, including in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment.

The company’s LNG business has about 475 employees with headquarters in Allentown, Pennsylvania and a 390,000-square-foot manufacturing facility in Port Manatee, Florida, where all sizes of CWHEs are made.

“Highly complementary acquisition”

This is the fourth acquisition Honeywell has announced this year as part of its capital deployment strategy.

Vimal Kapur, Chairman and CEO of Honeywell said “this highly complementary acquisition will further strengthen our energy transition portfolio, and Air Products’ CWHE technology will immediately expand our installed base – creating new opportunities to compound growth in aftermarket services and digitalization through our Honeywell Forge platform.”

Air Products’ chairman and CEO, Seifi Ghasem, said the decision to divest “our LNG heat exchanger technology and equipment business reflects Air Products’ continued focus on its two-pillar strategy – to grow our core industrial gas business and related technology and equipment, and to be a first-mover delivering clean hydrogen at scale to decarbonize industrial and heavy-duty transportation sectors.”

“The LNG business is a great business and at its strongest point in its decades-long history thanks to the outstanding work of our people, and they will be in good hands to advance as part of Honeywell’s related portfolio of technologies,” he said.

Most Popular

Venture Global gets FERC OK to boost Calcasieu Pass LNG capacity

US LNG exporter Venture Global LNG has received approval from the US FERC to increase the peak liquefaction capacity of its Calcasieu Pass LNG terminal in Louisiana.

Shell’s LNG Canada nears first LNG

LNG giant Shell is nearing the launch of the first liquefaction train at its LNG Canada export terminal in Kitimat.

Petronas, Commonwealth LNG ink 20-year SPA

Malaysian energy giant Petronas has signed a 20-year deal to buy liquefied natural gas from Commonwealth LNG's planned 9.5 mtpa facility in Cameron, Louisiana.

More News Like This

Argent LNG to use Honeywell’s pretreatment tech

Argent LNG plans to use Honeywell's pretreatment solutions for the planned LNG export terminal in Port Fourchon, Louisiana.

Honeywell wraps up $1.81 billion acquisition of Air Products’ LNG business

In July, the two firms revealed the all-cash transaction. Air Products announced the completion of the deal in a statement...

Eni’s Mozambique FLNG hits production milestone

US-based Air Products said its dual mixed refrigerant LNG process technology and equipment, which has been deployed at Eni's...

Daewoo E&C installs giant heat exchanger at Nigeria LNG’s seventh train

South Korea’s Daewoo E&C has completed the installation of a giant heat exchanger at the seventh train of Nigeria...