Honeywell, headquartered in Charlotte, North Carolina, is to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, a portfolio company of Odyssey Investment Partners, for $1.325 billion in an all-cash transaction.

This follows Honeywell’s spin off of its Advanced Materials business, including its Spectra advanced fibre operations, announced in October.

The transaction will enable Honeywell to further simplify its portfolio in order to accelerate value creation in alignment with three targeted megatrends – automation, aerospace and energy transition.

Honeywell’s PPE business, part of the Industrial Automation (IA) business portfolio, is a global provider of PPE for industrial workers, offering a comprehensive and differentiated product portfolio that serves a diverse and resilient set of growing customers and end markets.

In 2020-21 Honeywell significantly increased production capacity and expanded its operations to help address increased demand for PPE, and especially facemasks, across the USA.

The PPE business has approximately 5,000 employees and a streamlined global manufacturing and distribution footprint that allows for cost-effective production, close proximity to customers and optimised lead times. It currently operates 20 manufacturing sites and 17 distribution centres across the USA, Mexico, Europe, North Africa, Asia Pacific and China.

“Over the last five years, our PPE business has experienced significant wins as a result of its operational improvement initiatives, footprint rationalisation and quick adaptation to global needs following the pandemic,” said Honeywell chairman and CEO Vimal Kapur. “With this transaction, the business will be positioned to accelerate its growth trajectory as it benefits from Odyssey’s historic investing in the PPE sector and scaling similar businesses to expand into new products, geographies and end markets.”

This announcement also follows the divestiture of Honeywell’s Lifestyle and Performance Footwear Business to Rocky Brands for $230 million in 2021 and completes Honeywell’s exit from PPE. Honeywell will retain its gas detection portfolio within the Industrial Automation segment.

The transaction, which is expected to be completed in the first half of 2025, is subject to customary closing conditions.

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