Honeywell has agreed to sell its productivity solutions and services unit to industrial equipment maker Brady in an all-cash deal worth $1.4 billion, the conglomerate said on Monday, as it aims to streamline its sprawling business footprint.
The industrial giant said in July it was evaluating strategic alternatives for two businesses, including productivity solutions and services (PSS), ahead of splitting its operations into separate aerospace, automation and advanced materials units.
The divestiture of the PSS unit, which makes mobile computers, barcode scanners and printing solutions for the warehouse and logistics market, is expected to be completed in the second half of 2026. Honeywell had divested its personal protective equipment business in 2024 and spun off its advanced materials unit in October 2025.
“We believe the sale price of just ~$1.4 billion reflects a ‘fire sale’ valuation that is at or near rock bottom, ahead of what could be a cyclical recovery in the warehouse automation sector over the next several years,” said BNP Paribas Equity Research senior analyst Andrew Buscaglia.
“We understand Honeywell is in a hurry to reposition its portfolio ahead of the Aerospace spinoff, yet we believe the value of PSS does not reflect future growth potential.”
Meanwhile, Brady said it expects the acquisition to be double-digit accretive to its adjusted profit within the first year after the deal closes.
Brady manufactures labels, signs, safety devices and printing systems for industries including electronics, manufacturing and aerospace.
Shares of Honeywell were down 1.5% in afternoon trading, while Brady’s inched 0.6% lower.
Source: Reuters.com