Honeywell to Acquire Air Products' LNG Tech to Expand Services
![Honeywell to Buy Air Products' LNG Tech, Expand Energy Transition](https://americanceomag.com/wp-content/uploads/2024/07/Honeywell_to_Acquire_Air_Products_Liquefied_Natural_Gas_Process-768x432.png)
July 11, 2024: Honeywell International Inc. (NASDAQ: HON) announced a definitive agreement to acquire Air Products’ (NYSE: APD) liquefied natural gas (LNG) process technology and equipment business for $1.81 billion in cash. This strategic move underscores Honeywell’s commitment to expanding its energy transition solutions and services portfolio, catering to customers navigating the global shift towards cleaner energy sources.
The acquisition encompasses Air Products’ design and manufacturing capabilities for coil-wound heat exchangers (CWHEs) and related equipment, as well as critical components in natural gas pre-treatment and liquefaction. Honeywell already boasts a leading position in pre-treatment solutions, and adding Air Products’ CWHE technology strengthens their entire LNG value proposition.
Vimal Kapur, Chairman and CEO of Honeywell, acknowledges the role of natural gas as a “critical lower-emission and affordable transition fuel” in the current energy landscape. He emphasizes its potential to bridge the gap towards a future powered by renewables while fulfilling the world’s ever-growing energy demands.
The acquisition presents several advantages for Honeywell. First, it broadens its installed base of LNG equipment, opening doors for lucrative aftermarket services and the potential to integrate its digital automation platform, Honeywell Forge. Second, the acquired CWHE technology enjoys industry recognition for its high efficiency, durability, and safety features, further enhancing Honeywell’s overall LNG solution.
While natural gas is positioned as a transitional fuel, its environmental impact remains a concern. The announcement addresses this by highlighting Air Products’ CWHE technology’s contribution to “efficient, reliable and optimized management of natural gas assets,” suggesting a focus on minimizing the environmental footprint of natural gas operations.
The success of this acquisition hinges on Honeywell’s ability to seamlessly integrate Air Products’ LNG business and leverage the combined expertise to deliver a best-in-class solution to customers. Analysts will closely monitor the impact on Honeywell’s revenue streams, particularly in the aftermarket services and digital automation segments.
In conclusion, Honeywell’s acquisition of Air Products’ LNG business represents a strategic move to solidify its position in the evolving energy landscape. It bolsters its natural gas offerings while aligning with the company’s commitment to providing solutions that pave the way for a cleaner energy future.
Also Read, Arsenic and Lead Found in Tampons Sold in U.K., Greece, and U.S.