Honeywell has agreed to sell its Productivity Solutions and Services unit to Brady Corporation for $1.4 billion in cash; the deal is expected to close in the second half of 2026, pending regulatory approvals.

Deal at a glance - Buyer: Brady Corporation - Seller: Honeywell - Price: $1.4 billion in cash - Expected close: second half of 2026, subject to regulatory approvals and customary conditions - PSS 2025 revenue: roughly $1.1 billion (per Honeywell) - Products: mobile computers, barcode scanners and printing systems for warehouses, logistics and manufacturing Where the pieces fit The sale is the latest step in Honeywell's multi-year effort to slim down and sharpen its focus ahead of planned corporate reorganizations. The company sold its personal protective equipment business in 2024 and spun off its Advanced Materials arm in October 2025. Honeywell has said it plans to separate Aerospace and Automation into two independent publicly traded companies, with the Aerospace split scheduled for the third quarter of 2026. "With the PSS divestiture, we're nearing completion of our multi-year portfolio transformation, further accelerating value creation as we prepare to separate our Aerospace and Automation businesses into two independent industry leading public companies," said Vimal Kapur, Chairman and CEO of Honeywell. "The sale also enables us to continue strengthening our financial and operational focus on the company's core businesses." Why Brady is buying PSS Brady Corporation, a global maker of identification and protection products such as labels, signs and printing systems, said the acquisition will broaden its capabilities in data capture, mobile computing and workflow automation. Brady expects the purchase to be double-digit accretive to adjusted profit within the first year after closing. The company trades on the New York Stock Exchange under the ticker BRC and has been growing its industrial systems footprint through product development and deals. Financial and strategic implications For Honeywell, the transaction frees capital and reduces the scope of businesses it must manage while it completes the planned separations. The PSS unit, though profitable, combines hardware, software and service models that differ from Honeywell's remaining core industrial and aerospace operations. The sale follows other portfolio moves highlighted by Honeywell, including approximately $14 billion of acquisitions since 2023, ranging from compressor controls to cybersecurity and access solutions — a tilt toward software and automation assets that better fit the company's long-term industrial strategy. For Brady, adding PSS fills gaps in digital identification and data-capture offerings. Warehouse customers increasingly expect integrated hardware, software and services to track inventory and automate workflow; mobile computers and barcode technology help Brady evolve from a labelling and signage supplier toward a fuller systems provider. Market and operational considerations The companies say integration work will begin after closing.

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Closing is expected in the second half of 2026, subject to regulatory approvals and customary closing conditions.

This article was created with AI assistance.