TLDR
- Honeywell agreed to sell its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash
- PSS generated roughly $1.1 billion in revenue in 2025 and employs around 3,000 people globally
- The deal is priced at approximately 8x 2025 EBITDA
- The sale is part of Honeywell’s broader portfolio simplification ahead of its planned Aerospace spin-off in Q3 2026
- Brady expects the deal to be double-digit accretive to adjusted diluted EPS in the first year, with $25 million in annual cost synergies within three years
Honeywell (HON) announced on April 20, 2026, that it has agreed to sell its Productivity Solutions and Services business to Brady Corporation (BRC) for $1.4 billion in an all-cash deal.
Honeywell $HON will sell its Productivity Solutions and Services business to Brady for $1.4B in cash. PSS did about $1.1B of 2025 revenue. The move is part of Honeywell’s portfolio simplification ahead of its planned aerospace spin in Q3 2026.
— Wall St Engine (@wallstengine) April 20, 2026
PSS makes mobile computers, barcode scanners, and printing solutions, mainly for warehouse and logistics customers. It pulled in about $1.1 billion in revenue in 2025.
The $1.4 billion price tag works out to roughly 8x PSS’s 2025 EBITDA. The deal is expected to close in the second half of 2026, pending regulatory approval.
Honeywell International Inc., HON
Honeywell CEO Vimal Kapur called the sale a key step in completing the company’s “multi-year portfolio transformation.” The company is pushing ahead with plans to split into two independent public companies — one focused on Aerospace, the other on Automation.
The Aerospace spin-off is still on track for Q3 2026.
This isn’t the first piece Honeywell has shed recently. The company divested its Personal Protective Equipment business in 2024 and spun off its Advanced Materials unit as Solstice Advanced Materials (SOLS) in October 2025.
Honeywell is also still reviewing strategic options for its Warehouse and Workflow Solutions business, which runs under the Intelligrated and Transnorm brands.
Brady Corporation’s Play
For Brady, this is a meaningful expansion. The Milwaukee-based manufacturer of labels, signs, and safety products is using the PSS deal to move into data capture, mobile computing, and workflow automation.
Brady said the acquisition is expected to be double-digit accretive to adjusted diluted EPS in the first full year after closing. The company is targeting at least $25 million in annual cost synergies within three years.
The deal will push Brady’s pro forma net debt to EBITDA leverage to around 2.5x after financing — something investors will be watching closely as integration gets underway.
Deal Terms and Timeline
The transaction is an all-cash deal, with Centerview Partners advising Honeywell on the financial side. Legal counsel includes Kirkland & Ellis, Baker McKenzie, and Womble Bond Dickinson.
Closing is expected in H2 2026, subject to standard regulatory approvals and closing conditions.
PSS currently sits inside Honeywell’s Industrial Automation segment. Once the deal closes, it will operate under Brady’s umbrella as part of a broader industrial productivity and safety platform.
Honeywell has now announced roughly $14 billion in acquisitions since 2023, while simultaneously trimming non-core assets. The PSS sale is the latest move in that ongoing reshaping effort.
Brady’s acquisition of PSS brings the company roughly 3,000 new employees and a client base across warehouse, logistics, and manufacturing sectors.
The deal is subject to regulatory review, with integration and retention risks flagged as potential headwinds to the projected synergies.
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