Honeywell (NASDAQ: HON) announced it will sell its Productivity Solutions and Services business to Brady Corporation (NYSE: BRC) for $1.4 billion in cash. The transaction is expected to close in the second half of 2026, subject to regulatory approvals and customary conditions.

The sale is part of Honeywell's portfolio simplification strategy ahead of its planned aerospace business spin-off scheduled for the third quarter of 2026. The company began reviewing strategic alternatives for PSS and its Warehouse and Workflow Solutions business in July 2025.

PSS generated approximately $1.1 billion in revenue in 2025 and provides mobile computers, barcode scanners and printing solutions for warehouse and logistics markets. The business is currently part of Honeywell's Industrial Automation portfolio.

"With the PSS divestiture, we are nearing completion of our multi-year portfolio transformation, further accelerating value creation as we prepare to separate our Aerospace and Automation businesses into two independent industry leading public companies," said Vimal Kapur, Chairman and CEO of Honeywell.

Brady Corporation manufactures identification and protection solutions for electronics, manufacturing and aerospace industries. The acquisition will expand Brady's capabilities in data capture, mobile computing and workflow automation.

Honeywell continues to evaluate strategic alternatives for its Warehouse and Workflow Solutions business, which operates under the Intelligrated and Transnorm brands.

The transaction follows Honeywell's divestiture of its Personal Protective Equipment business in 2024 and the spin-off of its Advanced Materials business as Solstice Advanced Materials (NASDAQ: SOLS) in October 2025. Since 2023, Honeywell has announced approximately $14 billion in acquisitions.

Centerview Partners is serving as financial advisor to Honeywell, with legal counsel provided by Kirkland & Ellis LLP, Baker McKenzie and Womble Bond Dickinson.