Honeywell International (Nasdaq: HON) announced on April 20, 2026, a definitive agreement to sell its Productivity Solutions and Services (PSS) business to Brady Corporation (NYSE: BRC) for $1.4 billion in cash. The transaction is a central element of Honeywell’s portfolio simplification strategy, occurring as the company prepares for the upcoming separation of its Aerospace division. The sale price represents a multiple of approximately eight times the unit’s 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA).
The PSS business, which is currently part of Honeywell’s Industrial Automation segment, is a global provider of mobile computing, barcode scanning, and printing solutions. Based in Fort Mill, South Carolina, the unit generated approximately $1.1 billion in revenue during the 2025 fiscal year and maintains a workforce of roughly 3,000 employees across North America, Europe, Asia, and Latin America. Its technology is widely utilized by enterprise customers in the logistics, warehousing, manufacturing, and retail sectors for automated data collection and tracking.
Honeywell Chairman and CEO Vimal Kapur stated that the divestiture marks a significant milestone in the company’s multi-year portfolio transformation. The move is intended to optimize operational focus on core business lines ahead of the planned spin-off of Honeywell Aerospace, which is scheduled for completion in the third quarter of 2026. The new aerospace entity is expected to trade under the ticker symbol HONA. This transaction follows other recent portfolio actions, including the 2024 sale of the Personal Protective Equipment business and the October 2025 spin-off of the Advanced Materials segment as Solstice Advanced Materials (Nasdaq: SOLS).
For Brady Corporation, the acquisition is expected to nearly double its revenue base and significantly expand its presence in the $9 billion productivity solutions market. Brady President and CEO Russell R. Shaller noted that the integration of PSS will create a comprehensive platform by combining Brady’s identification and safety products with PSS’s mobility and scanning hardware. Brady expects the deal to be double-digit accretive to its adjusted diluted earnings per share in the first full year following the close. The company also targets at least $25 million in annual run-rate cost synergies within three years.
The transaction has been unanimously approved by the boards of directors of both companies and is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions. Brady intends to fund the acquisition through a combination of existing cash on hand and new debt financing. Centerview Partners served as the exclusive financial advisor to Honeywell, while Kirkland & Ellis LLP, Baker McKenzie, and Womble Bond Dickinson provided legal counsel.