Honeywell announced plans to sell its Warehouse and Workflow Solutions (WWS) business to American Industrial Partners.
"Honeywell delivered a strong start to the year while navigating a challenging geopolitical environment. Orders were up 7% with growth in all segments, pushing backlog to over $38 billion, led by buildings and industrial automation. Through our relentless focus on productivity and execution, we generated 90 basis points of segment margin expansion. This profitable growth, coupled with an acceleration in stranded costs takeout, drove 11% adjusted earnings growth, overcoming the impacts of rising inflation and the disruption in the Middle East. This is a testament to the resiliency of the Honeywell portfolio," says Vimal Kapur, chairman and CEO of Honeywell. "This quarter, we took the final steps to conclude our multi-year portfolio transformation with our announcements to sell Productivity Solutions and Services and Warehouse and Workflow Solutions, both of which are expected to close in the second half of 2026. Further, the Honeywell Aerospace spin-off is now expected to be completed in the third quarter on June 29. All of the acquisitions, divestitures, spin-offs and simplification efforts over the last several years have positioned both aerospace and automation for bright futures as independent, leading companies, and we look forward to sharing more at the upcoming investor days in June.”
Key takeaways:
· American Industrial Partners (AIP) is a private equity firm that invests in quality industrial businesses with strong management teams.
· Honeywell's WWS business operates commercially under the Intelligrated brand, which it acquired in July 2016, and the Transnorm brand, which it acquired in October 2018.
- Both brands provide supply chain and warehouse automation projects, services and products, including automated sortation systems, palletizers, conveyors and robotics solutions as well as aftermarket services and software.
· WWS will build on AIP's existing investment in Trew, creating a complementary and differentiated platform to better serve customers across a wide range of industries.
· Honeywell also announced plans to sell its Productivity Solutions and Services business to Brady Corporation.
