By Lauren Thomas
Honeywell International struck a roughly $2.2 billion deal for pump-and-compressor maker Sundyne, extending the company's brisk pace of dealmaking.
The details
The all-cash deal was announced Tuesday morning, confirming an earlier report from The Wall Street Journal.
Sundyne is owned by the private-equity firm Warburg Pincus, which has held the business for the past five years.
Honeywell said last month it is effectively breaking up into three new entities, with plans to separate its aerospace division and move ahead with a spinoff of its advanced-materials arm.
Sundyne would bolster Honeywell's remaining core offerings around critical equipment, automation and control systems for businesses. The separation of Honeywell's automation and aerospace businesses isn't expected to be completed until the second half of next year.
Honeywell said it expects the Sundyne deal will immediately add to its sales growth, and to its adjusted earnings in the first full year of ownership.
The context
Honeywell has been on a merger-and-acquisition spree, having already announced roughly $10 billion in acquisitions since the start of 2023, not including Sundyne. It has also sold off some noncore assets, including its personal-protective-equipment business.
Arvada, Colo.-based Sundyne manufactures pumps and compressors for customers in industries including petrochemicals and oil and gas transportation and processing. Its products, such as leakage-free pumps, are used to help run plants around the world, according to the company's website. The company has about 1,000 employees.
Sundyne was for years held by United Technologies (which merged with Raytheon, now known as RTX), until it was sold in 2012 to private-equity firms BC Partners and Carlyle Group.
In early 2020, BC Partners and Carlyle sold Sundyne to Warburg Pincus for an undisclosed amount. Warburg has since focused on improving the company's product line and customer service, among other things.
Write to Lauren Thomas at lauren.thomas@wsj.com
(END) Dow Jones Newswires
March 04, 2025 07:16 ET (12:16 GMT)
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