Lead photo: A completed LNG heat exchanger manufactured at Air Products’ Port Manatee facility is being loaded on a carrier at the Port of Manatee for shipment to the customer. (Air Products photo)

Manufacturing conglomerate Honeywell is set to acquire the liquefied natural gas (LNG) process technology and equipment unit of Air Products for $1.81 billion.

Announced July 10, the deal represents approximately 13x estimated 2024 EBITDA.

Honeywell said the addition will enable it to offer customers a comprehensive, top-tier solution for managing their energy transformation needs. The holistic offering will encompass natural gas pre-treatment and liquefaction that utilizes automation technologies unified under the Honeywell Forge and Experion platforms.

Currently, Honeywell provides a pre-treatment solution serving LNG customers globally. The Air Products LNG process technology and equipment business includes a portfolio of in-house design and manufacturing of coil-wound heat exchangers and related equipment.

“This highly complementary acquisition will further strengthen our energy transition portfolio, and Air Products’ CWHE technology will immediately expand our installed base — creating new opportunities to compound growth in aftermarket services and digitalization through our Honeywell Forge platform,” Honeywell Chairman and CEO Vimal Kapur said in a news release.

Meanwhile, Air Products’ Chairman, President and CEO Seifi Ghasemi said the company’s decision to divest the business unit reflects its continued focus on its two-pillar strategy of growing its core industrial gas business and related technology and equipment, and to deliver clean hydrogen at scale.