Honeywell Acquires Sundyne & Boosts Critical Equipment Offerings

Honeywell International Inc. HON recently completed the acquisition of Sundyne from private equity firm Warburg Pincus for $2.16 billion in cash.Based in Arvada, CO, Sundyne is a leading designer and manufacturer of advanced pumps and gas compressors for use across several industries, including energy, industrial, chemical and petrochemical. The company has an employee base of around 1,000 personnel.HON’s Acquisition RationaleThe latest buyout is in sync with Honeywell’s policy of acquiring businesses to strengthen its business and expand its market share. The inclusion of Sundyne’s expertise in highly engineered pumps and compressors will complement Honeywell Forge platform and boost HON’s Energy and Sustainability Solutions (ESS) business. This acquisition will strengthen Honeywell’s process technology and critical equipment portfolio, thus enabling it to offer a comprehensive line of solutions in the pumps and compressors space for its customers.The buyout will enhance growth opportunities for Honeywell UOP business' value chains in several areas, including liquefied natural gas, refining and petrochemicals, as well as clean and renewable fuels.  The company expects the buyout to be accretive to its sales, segment margins and adjusted earnings per share in the first full year of possession.Other Notable BuyoutsAcquisitions are an essential aspect of Honeywell's growth strategy. In October 2024, the company closed the acquisition of Civitanavi Systems S.p.A. for about €200 million ($217 million) to boost its portfolio of aerospace navigation solutions. With the buyout, Honeywell expects to strengthen its foothold in the European Union. In September 2024, the company acquired CAES Systems Holdings LLC (“CAES”) from the private equity firm Advent. The transaction will augment its defense technology offerings across various domains, including land, sea, air and space.Also, in the same month, the company acquired Air Products’ liquefied natural gas (LNG) process technology and equipment business for $1.81 billion. The inclusion of LNG process technology and equipment business expertise in the in-house design and manufacturing of coil-wound heat exchangers and related equipment portfolio will boost Honeywell’s energy transition portfolio.Zacks Rank and Price PerformanceHoneywell currently carries a Zacks Rank #3 (Hold). The company’s Aerospace segment is witnessing solid momentum, driven by strength in the defense business and growth in air transport flight hours. Strong demand across the commercial aviation aftermarket business is aiding the segment.Image Source: Zacks Investment ResearchIn the past year, HON stock has gained 8.4% compared with the industry’s 6.5% growth.However, weakness in the Process solutions business, due to lower demand for smart energy and thermal solutions, has been affecting the Industrial Automation segment's performance. Also, softness in the productivity solutions and services business, owing to lower demand in Europe, remains a concern.Stocks to ConsiderSome better-ranked stocks are discussed below.Howmet Aerospace HWM currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.HWM delivered a trailing four-quarter average earnings surprise of 8.8%. In the past 60 days, the consensus estimate for Howmet’s 2025 earnings has increased 6.1%.Federal Signal Corporation FSS currently carries a Zacks Rank #2 (Buy). FSS delivered a trailing four-quarter average earnings surprise of 6.4%. In the past 60 days, the Zacks Consensus Estimate for Federal Signal’s 2025 earnings has increased 1.6%.AptarGroup, Inc. ATR presently carries a Zacks Rank of 2. ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Honeywell International Inc. (HON): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Federal Signal Corporation (FSS): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks