Honeywell (NASDAQ: HON) has agreed to acquire Sundyne LLC from private equity firm Warburg Pincus for $2.16 billion in an all-cash transaction. This acquisition, representing approximately 14.5x 2024 EBITDA on a tax-adjusted basis, aims to enhance Honeywell’s Energy and Sustainability Solutions business segment.
With approximately 1,000 employees and a significant recurring aftermarket revenue, Sundyne is headquartered in Arvada, and has a global presence. It is recognized for its design, manufacturing and aftermarket support of pumps and gas compressors used in process industries. The acquisition is expected to drive innovation and efficiency, supporting critical energy security needs globally. The synergy between Sundyne’s established products and Honeywell’s capabilities in process technologies and automation is anticipated to improve overall product offerings for customers.
“By combining Honeywell’s top-tier technology with Sundyne’s leading process industry solutions, this acquisition will further enhance our dynamic Honeywell UOP business and create strategic growth opportunities in attractive verticals,” said Vimal Kapur, chairman and CEO of Charlotte, N.C.-based Honeywell.
The integration of Sundyne’s products with Honeywell’s Honeywell Forge technology is expected to yield material revenue synergies and expand the global sales reach of both companies.
“Through the integration of Sundyne’s differentiated suite of products and equipment, combined with the process automation capabilities of our Honeywell Forge technology, we will be able to offer our customers a more comprehensive portfolio of solutions to meet their evolving needs,” said Ken West, president and CEO of Honeywell’s ESS segment.
The acquisition is projected to be immediately accretive to Honeywell’s sales growth, segment margins and adjusted EPS in the first full year of ownership. It follows Honeywell’s announcement of its planned separation of its Aerospace Technologies business and the spin-off of Advanced Materials, which will create three publicly listed industry leaders.
Honeywell’s acquisition of Sundyne is expected to close in the second quarter of 2025, pending customary closing conditions and regulatory approvals.
