Brady Completes $1.4 Billion Cash Purchase of Honeywell's PSS Unit
The deal folds Honeywell's mobile-computing and scanning business into Brady's identification and safety portfolio, pushing the combined company into a $9 billion productivity-solutions market.
Brady Corporation (BRC) completed its acquisition of Honeywell Technologies' Productivity Solutions and Services (PSS) business in an all-cash transaction valued at $1.4 billion. The deal, first announced in April 2026, closes a sale process that Honeywell had signaled since early 2026, when it classified PSS and its Warehouse and Workflow Solutions unit as assets held for sale as part of a broader portfolio realignment.
The transaction was structured as a straight cash purchase, with Brady paying approximately 8x EBITDA for the twelve months ended December 31, 2025. PSS generated sales of roughly $1.1 billion in 2025 and operates globally with about 3,000 employees, based in Fort Mill, South Carolina.
"Today marks the beginning of the next chapter for Brady as a leading industrial technology company, with enhanced capabilities and greater market access. The combination of Brady and PSS's portfolios creates an industrial technology leader with capabilities across identification, safety, connectivity, and intelligent workflow solutions. Brady now serves customers in nearly every end market, with an expanded portfolio designed to help customers improve productivity, safety and operational performance," said Brady's President and Chief Executive Officer, Vineet Nargolwala.
The combination pairs Brady's printer, consumables and specialty adhesive materials business with PSS's positions in mobile computing, barcode scanning, RFID and workflow software, extending Brady's reach into a large installed base of enterprise customers that had previously sat outside its core small- and mid-sized industrial accounts. Brady's stated rationale centers on expanding its addressable market to the $9 billion productivity solutions market and building out higher-margin software and service revenue that the company said would improve its recurring-revenue mix.
The deal follows a pattern set earlier in the year, when Honeywell (HON) disclosed in its second-quarter 2025 results that it was evaluating strategic alternatives for both PSS and WWS, concluding a portfolio review Chairman and CEO Vimal Kapur had launched in early 2024. Honeywell subsequently agreed to sell WWS to a separate buyer around the same time it finalized the PSS sale to Brady, part of a broader effort to simplify its structure ahead of the planned separation of Honeywell Aerospace.
At signing, Brady said the acquisition was expected to be double-digit accretive to Adjusted Diluted Earnings Per Share within the first year of closing, with a minimum of $25 million in annual run-rate cost synergies targeted within three years. The company also said it expected net debt-to-EBITDA of approximately 2.5x immediately following the transaction, deleveraging to below 2.0x within two years. Brady had flagged the pending deal as a subsequent event in its fiscal third-quarter 2026 results, noting the transaction remained subject to regulatory approvals and customary closing conditions ahead of its expected close in the second half of calendar 2026.