Brady Corporation has agreed to purchase Honeywell’s Productivity Solutions and Services (PSS) business for $1.4 billion in all‑cash consideration. The deal values PSS at roughly eight times its 12‑month EBITDA and adds a $1.1 billion annual revenue stream and about 3,000 employees to Brady’s portfolio.
The transaction reflects Honeywell’s ongoing portfolio simplification as it prepares to spin off its Aerospace business, while Brady seeks to broaden its product offering into mobile computing, barcode scanning, and workflow automation. “With the PSS divestiture, we are nearing completion of 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. The sale also enables us to continue strengthening our financial and operational focus on the company’s core businesses,” said Honeywell Chairman and CEO Vimal Kapur.
Brady’s CEO Russell R. Shaller said the acquisition will “significantly expand our portfolio into leading‑edge mobility and scanning solutions, which are trusted by the largest transportation, warehousing and logistics companies in the world.” He added that “the combination of Brady and PSS will create a more comprehensive solutions offering for a broad set of customers, bringing together Brady’s high‑performance printing, software, scanning and specialty adhesive materials with PSS’s full suite of mobility, scanning and software.” The deal is expected to be double‑digit accretive to Brady’s adjusted diluted earnings per share in the first year and will support the company’s transformation from a commodity supplier to an engineered solutions provider.
Financially, Brady will fund the purchase with cash on hand and new debt, resulting in a pro‑forma net debt‑to‑EBITDA ratio of about 2.5×. The company plans to reduce that ratio to below 2.0× within two years. It also anticipates at least $25 million in annual cost synergies within three years, driven by overlapping manufacturing, sales, and support functions across the combined organization.
The transaction is expected to close in the second half of 2026. Honeywell’s PSS business, which generated $1.1 billion in revenue in 2025 and employs roughly 3,000 people worldwide, has been a key player in mobile computing, barcode scanning and printing solutions for logistics, manufacturing and warehousing customers. Brady’s acquisition of PSS positions it to offer a full end‑to‑end platform that integrates its high‑margin printing and adhesive technologies with PSS’s hardware and software expertise.
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