Honeywell Streamlines Portfolio with $1.4 Billion Sale of Barcode Scanner Business to Brady
In a significant strategic maneuver, industrial giant Honeywell (NYSE: HON) has announced the sale of its Productivity Solutions and Services (PSS) business to Brady Corporation for a staggering $1.4 billion in an all-cash transaction. This landmark deal, unveiled on Monday, marks another pivotal step in Honeywell’s ongoing multi-year portfolio transformation, signaling a clear intent to sharpen its focus ahead of a planned corporate breakup.
A Strategic Divestment for Honeywell
The divestiture of PSS is a key component of Honeywell’s broader restructuring efforts. Chairman and CEO Vimal Kapur stated, “With the PSS divestiture, we are nearing completion of our multi-year portfolio transformation.” This transformation has already seen the sale of its personal protective equipment business in 2024 and the spin-off of its advanced materials segment as Solstice Advanced Materials in October 2025. Looking ahead, Honeywell plans to split its aerospace and automation divisions into separate public entities by the third quarter of 2026, underscoring a commitment to creating more agile and specialized businesses.
Honeywell had placed PSS, alongside its Warehouse and Workflow Solutions business (operating under Intelligrated and Transnorm), under strategic review in July 2025. While PSS finds a new home with Brady, Honeywell continues to assess alternatives for its remaining warehouse and workflow operations.
Brady’s Bold Leap into Mobility and Scanning
For Milwaukee-based Brady Corporation, this acquisition represents the largest in its history, significantly expanding its market footprint and technological capabilities. Brady CEO Russell R. Shaller emphasized the strategic fit: “The acquisition of Honeywell’s PSS business will significantly expand our portfolio into leading-edge mobility and scanning solutions, which are trusted by the largest transportation, warehousing and logistics companies in the world.”
PSS, headquartered in Fort Mill, South Carolina, is a formidable player in the warehousing and logistics sectors, providing essential barcode scanners, mobile computers, and printing solutions. The unit reported approximately $1.1 billion in revenue in 2025 and employs around 3,000 individuals globally, with operations spanning North America, Europe, Latin America, and Asia.
Financial Implications and Future Outlook
The $1.4 billion all-cash deal values PSS at approximately 8 times its EBITDA for the 12 months ended December 31, 2025. Brady, which recorded about $1.51 billion in annual sales in its most recent fiscal year, anticipates the acquisition to be double-digit accretive to its adjusted diluted earnings per share within the first year post-closing. Furthermore, Brady projects achieving at least $25 million in annual run-rate cost synergies within three years of the deal’s completion.
To finance this substantial acquisition, Brady plans to utilize a combination of cash on hand and new debt financing, targeting a net debt-to-EBITDA ratio of approximately 2.5x at closing. The transaction has received approval from both companies’ boards and is slated to conclude in the second half of 2026, subject to customary regulatory approvals. Centerview Partners is advising Honeywell, while Goldman Sachs is serving as Brady’s financial advisor.
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