Dive Brief:
- Honeywell has agreed to sell its productivity solutions and services business to identification and protection product manufacturer Brady Corp. for $1.4 billion in cash, the companies announced Monday.
- The Fort Mill, South Carolina-based PSS business offers hardware, software and services for data collection and tracking, supporting industries including manufacturing, warehouse, logistics and retail. The companies expect to complete the transaction in the second half of 2026.
- Honeywell said this move comes after it launched a review of the PSS unit in July 2025, and it’s still exploring alternatives for its warehouse and workflow solutions business. Details of the sale were not disclosed, but the sale is expected to be completed in the second half of 2026.
Dive Insight:
Honeywell’s PSS segment supplies mobile computers, barcode scanners and printing products, in addition to services such as repairs and maintenance. PSS generated $1.1 billion in revenue in 2025, almost a 6% decrease year over year, according to Honeywell’s annual securities filing.
The pending acquisition would expand Brady’s portfolio and serve the “largest transportation, warehousing and logistics companies in the world,” President and CEO Russell Shaller said in a statement. The unit has 3,000 employees at 40 manufacturing and distribution locations globally, Shaller said during a call with analysts on Monday.
“Their global footprint unlocks cost-efficient scale while maintaining the ability to meet shifting global needs,” Shaller said on the call. “With nearly 4,000 patents and almost 4 million service contracts, PSS is focused on the development of products and solutions that empower worker productivity for millions of frontline workers around the world in applications in which data accuracy is critical.”
Although Shaller noted the PSS footprint and employee count during a call with analysts Monday, Honeywell told Manufacturing Dive via email that it has not disclosed the details of the PSS manufacturing sites that would be transferred with the sale. That includes information such as the number and locations of included facilities.
Honeywell put all of the assets under the PSS and WWS units up for sale in Q4, according to its annual securities filing. However, assets under the PSS and WWS businesses lost value, with Honeywell noting a $724 million goodwill impairment and a valuation allowance of $255 million as of Dec. 31, 2025.
With the pending PSS sale, Honeywell Chairman and CEO Vimal Kapur said in a statement that the company’s portfolio transformation is nearly complete as it prepares to carve out the aerospace and automation businesses. It would also continue to bolster its financial and operational focus on the manufacturer’s core businesses.
Honeywell’s PSS divestiture aligns with its plans to streamline its portfolio as it shifts focus to automation, aviation technology and clean energy. In January, the manufacturer realigned its business units to comprise of aerospace technologies, industrial automation, building automation and a new segment, process automation and technology.
The company also moved the PSS and energy and sustainability solutions businesses to the new segment.
Honeywell in the process of splitting into three independent companies. In October 2025, Honeywell completed its advanced materials spinoff under the company name Solstice Advanced Materials.
In March, Honeywell filed a Form 10 registration statement for its aerospace offshoot that included more details about the upcoming entity, such as sales and income figures, goals and business structure. Honeywell anticipates completing the yet-unnamed publicly traded aerospace spinoff in the third quarter of 2026.
