Honeywell has agreed to sell its Personal Protective Equipment (PPE) business to Protective Industrial Products, a portfolio company of Odyssey Investment Partners, for $1.325 billion in an all-cash transaction.
PIP provides a wide range of hand protection products and other consumable personal protective equipment (PPE). With a catalog of over 5,000 SKUs, PIP’s products include hand and arm, eye, head, hearing, body, and respiratory protection. PIP’s hand protection line features gloves for chemical protection, cut resistance, cleanrooms, and food-service handling. Its proprietary brands include G-Tek, Bouton, Ironcat, Assurance, Kut-Gard, CleanTeam, QRP, and Ambi-Dex.
Founded in 1984, PIP is currently led by CEO Curt Holtz. The company employs over 1,000 people and operates 1.5 million square feet of warehousing space, with 1.3 million square feet located in the United States. PIP also has operations in Canada, Mexico, France, Spain, Australia, and China. Odyssey acquired PIP from Audax Private Equity in December 2020.
Honeywell’s PPE business, part of its Industrial Automation division, manufactures safety products for industrial workers. Its portfolio includes respiratory protection such as N95 masks and respirators; hearing protection like disposable earplugs and earmuffs; and eye and face protection, including safety goggles and face shields. Additionally, the business provides fall protection equipment such as harnesses and lanyards, as well as head protection products, including hard hats and helmets.
The PPE business employs approximately 5,000 people and operates 20 manufacturing facilities and 17 distribution centers across the US, Mexico, Europe, North Africa, Asia Pacific, and China. For the full year 2024, Honeywell estimates that PPE revenues will be $1.1 billion.
“As a leader in personal protective equipment, we have a uniquely talented team and a rich legacy of award-winning innovations that position us for continued long-term success delivering a full suite of head-to-toe safety solutions to our longstanding customer base,” said Mike Garceau, president and CEO of Honeywell’s Personal Protective Equipment business. “We look forward to joining the PIP family and continuing to build a strong future for our employees and delivering value for our customers across the globe.”
“Over the last five years, our PPE business has experienced significant wins as a result of its operational improvement initiatives, footprint rationalization, and quick adaptation to global needs following the pandemic,” said Vimal Kapur, chairman and CEO of Honeywell. “Now, with this transaction, the business will be positioned to accelerate its growth trajectory as it benefits from Odyssey’s historic investing in the PPE sector and scaling similar businesses to expand into new products, geographies, and end markets.”
Honeywell (NASDAQ: HON) operates across various industries, including aerospace, building technologies, materials, and safety and productivity solutions. Its products include aircraft engines, avionics, climate control systems, specialty chemicals, and industrial safety equipment. The company, founded in 1906 by Mark Honeywell, employs over 100,000 people, generates more than $36 billion in annual revenue, and is headquartered in Charlotte, North Carolina.
“We are excited to support PIP in its continued growth through this transformational acquisition,” said Craig Staub, a senior managing principal at Odyssey. “Odyssey has a long history of investing in the PPE and industrial safety sector, and we are pleased to bring our expertise to bear in creating a full-service global leader with a diverse product offering and comprehensive international presence. We are confident in the PIP leadership team’s ability to execute a seamless integration process and continue scaling the growing PIP platform.”
New York City-based Odyssey Investment Partners makes control investments ranging from $100 million to $300 million in middle-market companies with EBITDA of $20 million to $100 million. The firm specializes in the industrial and business services sectors. In February 2020, Odyssey closed Odyssey Investment Partners Fund VI LP at its hard cap of $3.25 billion.
The sale of Honeywell’s PPE business to PIP is expected to close in the first half of 2025.
© 2024 Private Equity Professional | November 26, 2024
