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Honeywell Acquires Sundyne for $2.16 Billion to Strengthen Energy Business
Honeywell International announced the acquisition of pump-maker Sundyne for $2.16 billion in cash. The move aligns with the company’s strategy to expand its energy business ahead of a planned three-way split.
Strategic Focus Under CEO Vimal Kapur
Under the leadership of CEO Vimal Kapur, Honeywell has been expanding its footprint in aviation, automation, and energy while divesting unrelated assets. This acquisition further supports the company’s growth in key industrial sectors.
About Sundyne
Sundyne, based in Arvada, Colorado, specializes in engineered pumps and gas compressors and provides aftermarket services. The company has operations in the U.S., Europe, and Asia, serving the energy and petrochemical industries.
Impact on Honeywell’s Energy Business
The acquisition will integrate into Honeywell’s energy and petrochemical unit, enhancing its aftermarket services. According to CEO Kapur, the deal is expected to drive sales growth, improve segment margins, and contribute to adjusted earnings per share within the first full year of ownership.
Honeywell’s Recent Acquisitions and Business Strategy
In 2023, Honeywell made four acquisitions, including the $1.8 billion purchase of a liquefied natural gas-related unit from Air Products and Chemicals. These strategic moves reinforce the company’s commitment to strengthening its industrial portfolio.
Planned Three-Way Split and Market Reaction
Last month, Honeywell announced plans to split into three independently listed companies. This decision follows a $5 billion investment by activist investor Elliott Management, which had urged restructuring due to underperformance in the stock market.
While the planned separation aims to unlock shareholder value, experts caution that potential gains may take time to materialize. Honeywell has projected downbeat results for 2025, and its stock has declined by over 6% this year.
Expected Closing and Financial Contributions
The Sundyne acquisition is expected to close in the second quarter of the year. Honeywell anticipates immediate contributions to revenue, margin improvements, and overall earnings growth once the acquisition is finalized.
Background on Sundyne’s Ownership
Private-equity firm Warburg Pincus acquired Sundyne in 2020 from BC Partners Advisors L.P. and the Carlyle Group. The transition to Honeywell marks another strategic shift for the pump and compressor manufacturer
“Honeywell Acquires Sundyne for $2.16 Billion to Strengthen Energy Business” “Honeywell Acquires Sundyne for $2.16 Billion to Strengthen Energy Business” “Honeywell Acquires Sundyne for $2.16 Billion to Strengthen Energy Business”