:max_bytes(150000):strip_icc()/GettyImages-2089837788-920d387c49d3477884a9d5ac9e07d142.jpg "Honeywell Stock Rises After $1.8B Liquified Natural Gas Technology Deal")
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Key Takeaways
- Honeywell said it would acquire the liquified natural gas process technology and equipment business from Air Products & Chemicals for $1.81 billion.
- Central to the deal are Air Products’ coil-wound heat exchangers, which provide high throughput of natural gas.
- The acquisition is Honeywell’s fourth announced deal this year.
Honeywell (HON) is continuing to shop for deals, announcing plans Wednesday to buy the liquified natural gas (LNG) process technology and equipment business from Air Products & Chemicals (APD) for $1.81 billion in cash in its fourth acquisition of the year.
The move, expected to close by the end of the year, gives Honeywell access to Air Products’ coil-wound heat exchangers, which provide “the highest throughput of natural gas in a single exchanger” with a minimal carbon footprint, the company said.
Shares of Honeywell were recently up more than 1%. Air Products’ shares edged higher.
Deal ‘Will Help Meet Ever-Increasing’ Energy Demands
“While the world continues to build the renewables-based energy infrastructure of the future, natural gas is a critical lower-emission and affordable transition fuel that will help meet ever-increasing and dynamic global energy demands,” Honeywell Chief Executive Officer (CEO) Vimal Kapur said.
Air Products’ LNG division employs roughly 475 workers with headquarters in Allentown, Pa., and operates a 390,000-square-foot manufacturing facility in Port Manatee, Fla.
The move will help Air Products “grow our core industrial gas business and related technology and equipment, and to be a first-mover delivering clean hydrogen at scale to decarbonize industrial and heavy-duty transportation sectors,” its CEO Seifi Ghasemi said.