Honeywell announced the sale of its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash. The transaction transfers Honeywell’s hardware, software and services that support high‑volume data collection and tracking—barcode scanners, mobile computers and printing solutions—to Brady. The deal is expected to close in the second half of 2026 and is subject to regulatory approvals and customary closing conditions.
PSS generated about $1.1 billion in sales in 2025 and employed roughly 3,000 people worldwide. The sale values the unit at roughly 8 times its 2025 EBITDA, reflecting the strong profitability of the data‑capture segment. By divesting PSS, Honeywell will sharpen its focus on core automation and digitalization businesses and accelerate its broader portfolio transformation, which includes the planned spin‑off of its Aerospace division in the third quarter of 2026.
The transaction is part of a series of moves that have reshaped Honeywell’s balance sheet and strategic profile. Earlier this year, Honeywell sold its Personal Protective Equipment business, and in October 2025 it spun off its Advanced Materials unit as Solstice Advanced Materials. The $1.4 billion cash proceeds will help Honeywell reduce debt, support capital returns to shareholders and fund future growth initiatives.
For Brady, the acquisition expands its product line into enterprise data capture and workflow solutions, positioning the company to serve warehouse, logistics and manufacturing customers with a broader, integrated offering. Brady expects the deal to be double‑digit accretive to its adjusted diluted earnings per share in the first year and to generate at least $25 million in annual cost synergies within three years. After financing, Brady’s net debt‑to‑EBITDA ratio is projected to be around 2.5×, with a goal of falling below 2.0× in two years.
"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," said Honeywell Chairman and CEO Vimal Kapur. "The sale also enables us to continue strengthening our financial and operational focus on the company’s core businesses." Brady President and CEO Russell R. Shaller added that the combination will create a more comprehensive solutions offering for a broad set of customers, bringing together high‑performance printing, software, scanning and specialty adhesive materials with PSS’s full suite of mobility, scanning and software.
The transaction is subject to regulatory approvals, including review by the U.S. Federal Trade Commission and the European Commission, and customary closing conditions. No material regulatory hurdles have been identified to date, and both parties have indicated that the deal is expected to close in the second half of 2026.
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