Honeywell is selling its barcode scanner business to Brady for $1.4 billion

Honeywell $HON agreed to sell its Productivity Solutions and Services business to Brady for $1.4 billion in an all-cash transaction, the companies announced Monday, as Honeywell continues to shed assets ahead of a planned breakup.

PSS sells barcode scanners, mobile computers, and printing solutions to customers in the warehousing and logistics sectors. It generated about $1.1 billion in revenue in 2025 and employs about 3,000 people globally, with operations across North America, Europe, Latin America, and Asia. PSS is based in Fort Mill, South Carolina.

The deal represents about 8x EBITDA for the 12 months ended Dec. 31, 2025, Brady said. The Milwaukee-based company expects the acquisition to be double-digit accretive to its adjusted diluted earnings per share within the first year after closing. Brady also expects to achieve at least $25 million in annual run-rate cost synergies within three years of closing.

Brady had about $1.51 billion in annual sales in its most recent fiscal year, making the PSS acquisition the largest in the company's history, according to Bloomberg. Brady's product lineup includes labels, signs, printing systems, and safety devices, with customers spanning the electronics, aerospace, and manufacturing sectors. The company expects to fund the transaction with cash on hand and new debt financing, with net debt-to-EBITDA of about 2.5x at close.

"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," Brady CEO Russell R. Shaller said in a statement.

Back in July 2025, Honeywell disclosed it had put PSS and a second unit, the Warehouse and Workflow Solutions business, under a strategic review. Honeywell said it remains active in its assessment of alternatives for that business, which operates under the brand names Intelligrated and Transnorm.

"With the PSS divestiture, we are nearing completion of our multi-year portfolio transformation," Honeywell Chairman and CEO Vimal Kapur said in a statement.

The sale of PSS is part of a larger restructuring at Honeywell. Earlier changes included selling its personal protective equipment business in 2024 and spinning off its advanced materials segment as Solstice Advanced Materials in October 2025. Honeywell also plans to split its aerospace and automation divisions into separate public companies by the third quarter of 2026.

Both companies' boards have approved the deal, which is expected to close in the second half of 2026, pending regulatory approval. Centerview Partners is advising Honeywell, while Goldman Sachs $GS is advising Brady.