Honeywell has struck a deal to acquire Air Products’ liquefied natural gas process technology and equipment business for $1.81 billion, The Wall Street Journal reports.
The cash deal announced Wednesday is a small bite for Charlotte, North Carolina-based Honeywell, which has a market capitalization of almost $140 billion. The industrial conglomerate operates in industries ranging from energy to aerospace. Air Products, based in Allentown, Pennsylvania, has a market value of about $57 billion.
The deal would allow Honeywell to expand its offerings to customers as LNG’s share of the global gas supply continues to grow. It’s estimated that global demand for LNG will rise by more than 50% by 2040.
Honeywell, which operates plants in Geismar and Baton Rouge, has taken steps to expand its Capital Region facilities over the last few years. In 2021, the company announced it was expanding its Baton Rouge facility to double the production capacity of Solstice ze, a supermarket refrigerant, and last year, it opened a new plant—its first large-scale manufacturing site for medical propellent Solstice Air.
Honeywell International in October applied for about $7.3 million in Louisiana sales tax and payroll rebates tied to a $343 million expansion of its Geismar facility that is expected to support at least 30 new permanent jobs.
