Air Products’ LNG business has approximately 475 employees with headquarters in Allentown, Pennsylvania, and a 390,000 square foot manufacturing facility in Port Manatee, Florida, where all sizes of CWHE are manufactured.
This is the fourth acquisition announced by Honeywell this year as part of its disciplined capital deployment strategy. The company is focused on high-return acquisitions that will drive future growth across its portfolio, which is aligned with the three compelling megatrends of automation, the future of aviation and the energy transition.
This transaction, which is expected to generate positive adjusted earnings per share in the first full year of ownership, is not subject to any financing conditions and is expected to close before the end of the calendar year, subject to customary closing conditions, including the receipt of certain regulatory approvals.
¹LNG Industry Trends | Deloitte US
About Honeywell
Honeywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is aligned with three major trends: automation, the future of aviation and the energy transition, powered by our Honeywell Accelerator operating system and Honeywell Forge IoT platform. As a trusted partner, we help organizations solve the world’s toughest and most complex challenges, delivering real-world solutions and innovations through our Aerospace Technologies, Industrial Automation, Building Automation and Energy & Sustainability Solutions businesses that help make the world smarter, safer and more sustainable. For more news and information about Honeywell, please visit www.honeywell.com/newsroom.
We describe in this release numerous trends and other factors that determine our business and future results. These discussions contain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act). Forward-looking statements are those that address activities, events or developments that management intends, expects, projects, believes or anticipates will or may occur in the future. They are based on management’s assumptions and assessments in light of historical experience and trends, current economic and industry conditions, expected future developments and other relevant factors, many of which are difficult to predict and beyond our control. They are not guarantees of future performance, and actual results, developments and business decisions may differ materially from those contemplated by our forward-looking statements. We undertake no obligation to update or revise any of our forward-looking statements, except as required by applicable securities laws. Our forward-looking statements are also subject to significant risks and uncertainties, including ongoing macroeconomic and geopolitical risks, such as lower GDP growth or recession, financial market volatility, inflation and certain regional conflicts, which may affect our short-term and long-term performance. In addition, no assurance can be given that any plan, initiative, projection, objective, commitment, expectation or outlook set forth in this release will be achieved or realized. These forward-looking statements should be considered in light of the information contained in this release, our Form 10-K and other filings with the Securities and Exchange Commission. Any forward-looking plans described in this release are not definitive and may be changed or discontinued at any time.
¹This release refers to certain non-GAAP measures, including:
- Segment margin, defined as segment profit divided by net sales; segment profit, on a Honeywell aggregate basis, is defined as operating income, excluding stock-based compensation expense, pension and other post-retirement service costs, amortization of acquisition-related intangible assets, certain acquisition-related costs, and repositioning and other charges.
- Adjusted earnings per share, which is defined as diluted earnings per share adjusted to exclude pension valuation charges, amortization of acquisition-related intangibles, certain acquisition-related costs and other items as described in the reconciliations provided when we disclose adjusted earnings per share; and
- EBITDA, which we define as profit before taxes, depreciation and amortization.
Management believes that, taken together with the amounts reported, these measures are useful to investors and management in understanding our ongoing operations and in analyzing current operating trends.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The primary limitations of these non-GAAP financial measures are that they exclude significant expenses and revenues that are required to be recognized in the consolidated financial statements under GAAP. In addition, they are subject to inherent limitations because they reflect management’s judgments about which expenses and revenues are excluded or included in determining these non-GAAP financial measures.
About Air Products
Air Products (NYSE: APD) is a leading industrial gases company with a more than 80-year history focused on energy, environmental and emerging markets. The company is built on two pillars of growth focused on sustainability. Air Products’ core business provides critical industrial gases, related equipment and application expertise to customers in dozens of industries, including refining, chemical, metals, electronics, manufacturing and food. The company also develops, engineers, builds, owns and operates some of the world’s largest clean hydrogen projects, supporting the transition to low- and zero-carbon energy in the heavy-duty transportation and industrial sectors. In addition, Air Products is the global leader in providing liquefied natural gas processing technologies and equipment, and supplies turbomachinery, membrane systems and cryogenic containers worldwide.
The company reported fiscal 2023 revenues of $12.6 billion from operations in approximately 50 countries and has a current market capitalization of more than $50 billion. Approximately 23,000 passionate, talented and committed employees from diverse backgrounds are driven by Air Products’ higher purpose: to create innovative solutions that benefit the environment, improve sustainability and reimagine what’s possible to solve challenges facing customers, communities and the world. For more information, visit airproducts.com or follow us on LinkedIn, XFacebook or Instagram.
Caution Regarding Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements about the transaction that is the subject of this release, its expected impact and timing, and the Company’s business prospects and investment opportunities. These forward-looking statements are based on management’s expectations and assumptions as of the date of this release and are not guarantees of future performance. Although forward-looking statements are made in good faith and are based on assumptions, expectations and projections that management believes are reasonable based on information currently available, actual performance and financial results may differ materially from the projections and estimates expressed in the forward-looking statements as a result of numerous factors, including the risk factors described in our Annual Report on Form 10-K for the year ended September 30, 2023 and other factors disclosed in our filings with the Securities and Exchange Commission. Except as required by law, we disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect any change in assumptions, beliefs or expectations or any change in events, conditions or circumstances on which any such forward-looking statements are based.