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Honeywell Acquires Li-ion Tamer & Boosts Building Automation Portfolio

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Key Takeaways

  • HON acquired Li-ion Tamer, a thermal runaway detection firm, to expand its automation portfolio.
  • The acquisition adds over 30 global patents and strengthens HON's fire life safety product suite.
  • Acquisition supports HON's growth in energy storage and data center markets via advanced fire detection.

Honeywell International Inc. (HON - Free Report) recently completed the acquisition of Li-ion Tamer business from Nexceris. The financial terms of the transaction were kept under wraps.

HON’s shares gained 2.5% yesterday to eventually close the trading session at $238.77.

Headquartered in Lewis Center, OH, Li-ion Tamer specializes in producing off-gas detection solution for lithium-ion (li-ion) batteries that helps in detecting thermal runaway events. The company’s advanced technology offers early detection of thermal runaway that facilitates in the prevention of lithium-ion battery fires.

Acquisition Rationale

The latest buyout is in sync with Honeywell’s policy of acquiring businesses to expand its market share and customer base. The inclusion of Li-ion Tamer’s expertise in fire detection technologies, coupled with its strong innovation capabilities, will enable the company to boost its fire life safety portfolio under the Building Automation business. It will help HON expand its presence in lucrative end markets like energy storage and data centers.

The acquisition will enable Honeywell to incorporate Li-ion Tamer’s strong product portfolio that consists of more than 30 global patents, thereby enabling it to provide an extensive range of fire detection products. This will also complement HON’s cutting-edge smoke detection technology and life safety solutions such as VESDA and Connected Life Safety Services.

Other Notable Buyouts

Acquisitions are an essential aspect of Honeywell's growth strategy. In June 2025, HON acquired Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash. 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 business.

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 strengthened 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 augmented 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 process technology and equipment business for $1.81 billion. The buyout boosted 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.

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In the past year, HON stock has gained 12% 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 from the same space 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 5.2%.

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 1.3%.

3M Company (MMM - Free Report) presently carries a Zacks Rank of 2. MMM delivered a trailing four-quarter average earnings surprise of 6.6%. In the past 60 days, the consensus estimate for 3M’s 2025 earnings has been stable.

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