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Odyssey in Advanced Talks to Acquire Honeywell's Face Mask Unit for $1.5 Billion

Odyssey Investment Partners is in advanced negotiations to acquire Honeywell International Inc.'s personal protective equipment unit, potentially valuing the deal at $1.5 billion.

Odyssey Investment Partners is reportedly in advanced discussions to acquire Honeywell International Inc.'s personal protective equipment (PPE) unit, according to sources familiar with the matter. The deal, which could be announced in the coming weeks, is expected to value Honeywell's PPE unit at approximately $1.5 billion. This unit includes products such as respiratory protection, hearing aids, work boots, and face masks, which saw a surge in demand during the COVID-19 pandemic. However, demand has since waned as the pandemic subsided.

The potential acquisition aligns with Honeywell's strategic efforts to realign its business focus towards aerospace, energy transition, and automation systems. Honeywell's CEO, Vimal Kapur, has been actively working on reshaping the company's portfolio, which recently included plans to spin off its advanced materials business, projected to generate up to $3.9 billion in revenue for the 2024 fiscal year.

Odyssey, a private equity firm, has prior exposure to the PPE market through its acquisition of Protective Industrial Products from Audax Private Equity in 2020. The firm is finalizing the deal, although deliberations are ongoing and could still face delays or the emergence of other potential buyers.

Honeywell has been active in the acquisition space as well, having recently acquired Carrier Global Corp.'s security unit and Air Products' liquefied natural gas process technology and equipment business. Honeywell's shares rose by 1.1% to $215.99 in New York, reflecting a market value of about $140 billion.

Both Honeywell and Odyssey have declined to comment on the ongoing negotiations.

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