Air Products and Chemicals Inc. of Trexlertown, Pa., completed the sale of its liquefied natural gas (LNG) process technology and equipment business to Honeywell for $1.81 billion in cash.
Initially announced in July 2024, closing conditions for the transaction have been fully met and regulatory approvals received, Air Products said Monday.
“I want to thank our former LNG colleagues for their contributions, hard work, and expertise, which have built a strong foundation that Honeywell can now take forward,” Chairman, President and CEO Seifi Ghasemi said. “Air Products remains laser focused on creating shareholder value by executing our growth strategy in industrial gasses and clean hydrogen to drive the energy transition and decarbonize.”
The strategic divestiture of the LNG process technology and equipment business reflects Air Products focus on its two-pillar growth strategy to profitably grow its core industrial gasses and related equipment businesses, and to deliver clean hydrogen at scale.
The company said the sale, related assets, manufacturing capability, and personnel associated with the LNG process technology and equipment business have successfully transferred to Honeywell, including about 475 employees and the Port Manatee, Fla., coil-wound heat exchanger manufacturing (CWHE) facility.
“The acquisition of Air Products’ LNG process technology and equipment business strengthens Honeywell’s energy transition portfolio and will enable our customers to manage their liquefied natural gas assets with greater efficiency and reliability,” said Ken West, president and CEO of Honeywell’s Energy and Sustainability Solutions segment.
“With the integration of the LNG business, we will be able to provide a greater level of energy transition management from beginning to end through a full spectrum of scalable solutions,” West said.
Honeywell’s full-service solution now provides customers a holistic offering that encompasses natural gas pre-treatment, state-of-the-art liquefaction, and digital automation technologies under the Honeywell Forge and Experion platforms, as well as the addition of Air Products’ CWHE technology.