$2.16B Acquisition: Honeywell Gears Up for Process Industry Expansion
In a substantial strategic expansion of its presence in the global process industries sector, Honeywell has completed its $2.16 billion acquisition of Sundyne, a leading supplier of mission-critical pumps and compressors, in an all-cash transaction with private equity firm Warburg Pincus. The acquisition, representing an aggressive approach to growing its Energy and Sustainability Solutions (ESS) area, brings Sundyne and its specialty engineering capabilities into Honeywell’s larger design, automation, and digital ecosystem.
Sundyne, located in Arvada, Colorado, included high-performance pumps and compressors for various process industries applications, including refining, petrochemicals, natural gas, and renewable fuels. Sundyne has an experienced employee workforce of nearly 1,000 employees and a tremendous global installed base that generates a strong aftermarket revenue stream for the company—a growing source of value in industrial companies.
The acquisition is expected to be immediately accretive to Honeywell’s revenue growth and margins, with positive impact projected on adjusted earnings per share (EPS) in the first full year of ownership.By combining Sundyne’s specialized offerings with Honeywell’s automation and digital offerings–led by the Honeywell Forge platform–the company intends to offer customers a complete end-to-end industrial solution that maximizes operational efficiency, reliability and sustainability.
“Bringing Sundyne’s differentiated products together with Honeywell’s leading technology and R&D capabilities will set our organization up for tremendous growth,” said Ken West, President and CEO of Honeywell’s ESS segment.“This acquisition strengthens our ability to provide an unmatched portfolio of technologies and services for customers across process-intensive industries, helping them navigate the energy transition with more intelligent and efficient solutions.”
This acquisition also reinforces the strategic transformation underway at Honeywell. In the last year, the company has communicated plans to take several significant steps in regard to acquisitions and divestitures as elements of its long-term growth and portfolio simplification strategy, including over $13.5 billion in announced transactions as of December 2023, geopolitical turbulence aside, including Carrier Global’s Access Solutions business, Civitanavi Systems, CAES Systems, Air Products’ LNG Operations, and the Catalyst Technologies division of Johnson Matthey.
In parallel, Honeywell has also taken steps to streamline its operations. It recently completed the sale of its Personal Protective Equipment business and has announced plans to spin off both its Aerospace Technologies and Solstice Advanced Materials segments into independently listed companies. These modifications convey a refined approach to create three leaders within their respective industries, each with different market dynamics and growth paths.
In acquiring Sundyne, Honeywell not only expands its mechanical equipment offering but strengthens its value proposition across fast-growing verticals, like liquefied natural gas (LNG), clean fuels, and carbon capture, where the advanced automation of specific physical infrastructure is central. Connecting the physical and digital offerings is fundamental to Honeywell’s long-term vision: to be a global enabler of the energy transition.
As Honeywell continues to pursue smart, scalable, and sustainable solutions for its industrial customers, the acquisition of Sundyne represents an ambitious and strategic forward progress in cementing Honeywell’s position as a leading global player in digital industrial transformation.
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