U.S.-based technology firm Honeywell has completed the acquisition of liquefied natural gas (LNG) process technology and equipment business from Air Products, a compatriot industrial gases supplier.
The closing conditions for the all-cash transaction, first announced in July , have been fully met with regulatory approvals received. The $1.81 billion deal is meant to expand Honeywell’s energy transition capabilities, while 475 new employees are anticipated to assist the firm’s customers on their energy transformation journey.
The tech firm’s solutions, such as natural gas pre-treatment, liquefaction, and digital automation technologies, will now be supplemented by Air Products’ coil-wound heat exchangers (CWHE) technology – and their manufacturing facility in Port Manatee, Florida – under Honeywell’s Forge and Experion platforms.
President and CEO of Honeywell’s Energy and Sustainability Solutions (ESS) segment, Ken West , said: “The acquisition of Air Products’ LNG process technology and equipment business strengthens Honeywell’s energy transition portfolio and will enable our customers to manage their liquefied natural gas assets with greater efficiency and reliability.”
As for Air Products, the divestiture is said to be a strategic move, part of its two-pillar growth strategy to grow its core industrial gases and related equipment businesses, and deliver clean hydrogen at scale.
“I want to thank our former LNG colleagues for their contributions, hard work and expertise, which have built a strong foundation that Honeywell can now take forward. Air Products remains laser focused on creating shareholder value by executing our growth strategy in industrial gases and clean hydrogen to drive the energy transition and decarbonize,” noted Air Products’ Chairman, President and CEO, Seifi Ghasemi .
In line with its intention to shift its focus to hydrogen, the U.S. player inked a 15-year agreement with TotalEnergies. Under the deal, set to start in 2030, Air Products is slated to deliver 70,000 tons of green hydrogen per year to the French player’s Northern European refineries.