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Honeywell has acquired Sundyne to strengthen its process technology and critical equipment offerings.
Sundyne offers pumps and gas compressors for energy, industrial, chemical and petrochemical industries.
The acquisition complements Honeywell Forge platform and boosts its Energy and Sustainability Solutions unit.
Honeywell International Inc. (HON - Free Report) recently completed the acquisition of Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash.
Based in Arvada, CO, Sundyne is a leading designer and manufacturer of advanced pumps and gas compressors for use across several industries, including energy, industrial, chemical and petrochemical. The company has an employee base of around 1,000 personnel.
HON’s Acquisition Rationale
The latest buyout is in sync with Honeywell’s policy of acquiring businesses to strengthen its business and expand its market share. The inclusion of Sundyne’s expertise in highly engineered pumps and compressors will complement Honeywell Forge platform and boost HON’s Energy and Sustainability Solutions (ESS) business. This acquisition will strengthen Honeywell’s process technology and critical equipment portfolio, thus enabling it to offer a comprehensive line of solutions in the pumps and compressors space for its customers.
The buyout will enhance growth opportunities for Honeywell UOP business' value chains in several areas, including liquefied natural gas, refining and petrochemicals, as well as clean and renewable fuels. The company expects the buyout to be accretive to its sales, segment margins and adjusted earnings per share in the first full year of possession.
Other Notable Buyouts
Acquisitions are an essential aspect of Honeywell's growth strategy. In October 2024, the company closed the acquisition of Civitanavi Systems S.p.A. for about €200 million ($217 million) to boost its portfolio of aerospace navigation solutions. With the buyout, Honeywell expects to strengthen its foothold in the European Union. In September 2024, the company acquired CAES Systems Holdings LLC (“CAES”) from the private equity firm Advent. The transaction will augment its defense technology offerings across various domains, including land, sea, air and space.
Also, in the same month, the company acquired Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion. The inclusion of LNG process technology and equipment business expertise in the in-house design and manufacturing of coil-wound heat exchangers and related equipment portfolio will boost Honeywell’s energy transition portfolio.
Zacks Rank and Price Performance
Honeywell currently carries a Zacks Rank #3 (Hold). The company’s Aerospace segment is witnessing solid momentum, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation aftermarket business is aiding the segment.
Image Source: Zacks Investment Research
In the past year, HON stock has gained 8.4% compared with the industry’s 6.5% growth.
However, weakness in the Process solutions business, due to lower demand for smart energy and thermal solutions, has been affecting the Industrial Automation segment's performance. Also, softness in the productivity solutions and services business, owing to lower demand in Europe, remains a concern.
HWM delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for Howmet’s 2025 earnings has increased 6.1%.
Federal Signal Corporation (FSS - Free Report) currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 1.6%.
AptarGroup, Inc. (ATR - Free Report) presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.
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Honeywell Acquires Sundyne & Boosts Critical Equipment Offerings
Key Takeaways
Honeywell International Inc. (HON - Free Report) recently completed the acquisition of Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash.
Based in Arvada, CO, Sundyne is a leading designer and manufacturer of advanced pumps and gas compressors for use across several industries, including energy, industrial, chemical and petrochemical. The company has an employee base of around 1,000 personnel.
HON’s Acquisition Rationale
The latest buyout is in sync with Honeywell’s policy of acquiring businesses to strengthen its business and expand its market share. The inclusion of Sundyne’s expertise in highly engineered pumps and compressors will complement Honeywell Forge platform and boost HON’s Energy and Sustainability Solutions (ESS) business. This acquisition will strengthen Honeywell’s process technology and critical equipment portfolio, thus enabling it to offer a comprehensive line of solutions in the pumps and compressors space for its customers.
The buyout will enhance growth opportunities for Honeywell UOP business' value chains in several areas, including liquefied natural gas, refining and petrochemicals, as well as clean and renewable fuels. The company expects the buyout to be accretive to its sales, segment margins and adjusted earnings per share in the first full year of possession.
Other Notable Buyouts
Acquisitions are an essential aspect of Honeywell's growth strategy. In October 2024, the company closed the acquisition of Civitanavi Systems S.p.A. for about €200 million ($217 million) to boost its portfolio of aerospace navigation solutions. With the buyout, Honeywell expects to strengthen its foothold in the European Union. In September 2024, the company acquired CAES Systems Holdings LLC (“CAES”) from the private equity firm Advent. The transaction will augment its defense technology offerings across various domains, including land, sea, air and space.
Also, in the same month, the company acquired Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion. The inclusion of LNG process technology and equipment business expertise in the in-house design and manufacturing of coil-wound heat exchangers and related equipment portfolio will boost Honeywell’s energy transition portfolio.
Zacks Rank and Price Performance
Honeywell currently carries a Zacks Rank #3 (Hold). The company’s Aerospace segment is witnessing solid momentum, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation aftermarket business is aiding the segment.
Image Source: Zacks Investment Research
In the past year, HON stock has gained 8.4% compared with the industry’s 6.5% growth.
However, weakness in the Process solutions business, due to lower demand for smart energy and thermal solutions, has been affecting the Industrial Automation segment's performance. Also, softness in the productivity solutions and services business, owing to lower demand in Europe, remains a concern.
Stocks to Consider
Some better-ranked stocks are discussed below.
Howmet Aerospace (HWM - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
HWM delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for Howmet’s 2025 earnings has increased 6.1%.
Federal Signal Corporation (FSS - Free Report) currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 1.6%.
AptarGroup, Inc. (ATR - Free Report) presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.