Honeywell International Inc. (HON) has announced that it would sell its personal protective equipment (PPE) division to Protective Industrial Products for approximately $1.33 billion in cash. This transaction, as reported by Reuters, underscores a strategic move to streamline its operations by divesting from the PPE sector, which falls under its industrial automation portfolio.
The deal is set to conclude in the first half of 2025. This decision comes amidst pressures from the activist investor Elliott Investment Management, which has been advocating for Honeywell to separate its aerospace and automation units. Such a divestiture could be seen as Honeywell’s response to simplify its business structure, focusing on core areas that align with the company’s long-term growth strategies.
The sale reflects not just a financial transaction but a significant strategic pivot for Honeywell, aiming to sharpen its focus on automation, aviation, and energy transition, amidst calls for a more defined corporate structure from its investors.
Price Action: As of the latest check, Honeywell shares were down less than 1% in premarket hours- trading at $225.25.
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