Honeywell to offload productivity solutions unit in $1.4bn deal

(Sharecast News) - Honeywell has agreed to offload its productivity solutions and services unit in a $1.4bn all-cash deal, the US industrial giant confirmed on Monday.

The sale, to American manufacturer Brady Corporation, is part of a wider strategy by Honeywell to simplify its sprawling portfolio of businesses ahead of the planned spin-off of its aerospace unit later this year.

It has already sold off a number of divisions, including its personal protective equipment arm in 2024 and the spin off Solstice Advanced Materials in October 2025.

It is continuing to evaluate options for its warehouse and workflow solutions business, which operates under the brand names Intelligrated and Transnorm.

Vimal Kapur, Honeywell chief executive, said: "With the PSS divestiture, we are nearing completion on our multi-year portfolio transformation, further accelerating value creation as we prepare to separate our aerospace and automation businesses into two independent, industry-leading public companies."

PSS, which has annual revenues of $1.1bn, supplies the warehouse and logistics markets with mobile computers, barcode scanners and printing solutions. Brady makes labels, signs and safety devices for a number of industries, including electronics and aerospace.

Kapur said: "PSS will benefit from Brady's highly-complementary and specialised leadership in industrial identification and safety, creating a broader, more integrated offering for warehouse, logistics and manufacturing customers."

Russell Shaller, Brady's chief executive, said the acquisition would "significantly" expand its portfolio, "enhance earnings power and expand our global business into new market opportunities".

The PSS sale is expected to complete in the second half of 2026, while the spin-off of the aerospace business is slated for the third quarter.

As at 1400 BST, shares in both Honeywell and Brady were largely unchanged in pre-market trading.