Honeywell and Air Products (AP) recently jointly announced that Honeywell has agreed to acquire AP’ LNG process technology and equipment business for $1.81 billion in an all-cash transaction. This represents approximately 13x estimated 2024 EBITDA. 
Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. AP’ complementary LNG process technology and equipment business consists of a comprehensive portfolio, including in-house design and manufacturing of coil-wound heat exchangers (CWHE) and related equipment. 
“This acquisition will further strengthen our energy transition portfolio, and AP’ CWHE technology will immediately expand our installed base - creating new opportunities to compound growth,” said Vimal Kapur, Chairman of Honeywell.
“The decision reflects AP’ continued focus on its two-pillar strategy to grow our core industrial gas business, and to be a first-mover delivering clean hydrogen” said AP’ Chairman Seifi Ghasemi.
The LNG market has quadrupled over the past 20 years and is expected to double over the next two decades, driven by demand in key end markets including power and data centers according to industry research.