Episode summary
Honeywell to Sell Productivity Business in $1.4 Billion Deal | Bloomberg Intelligence
Bloomberg Intelligence
· · 23 min · Hosts: Paul Sweeney, Scarlet Fu · Guests: Liana Baker, Scott Howe, Mike McGlone, Uma Moriarity
Summary
Honeywell is selling its productivity solutions and services business to Brady for $1.4 billion in cash as part of a broader effort to reshape its portfolio. The host and an analyst said Honeywell has been steadily slimming down through spin-offs and asset sales, and may continue reshaping the company under CEO Vimal Kapoor, including possible moves around software and Quantinuum.
Brady, a Milwaukee-based industrial company with a market cap of about $3.9 billion before the deal, is making its largest acquisition ever and is expected to become much larger in barcode, logistics, and scanning-related products. The analyst argued the transaction fits a broader investor-friendly trend toward breakups and divestitures across industrial companies.
The episode also focused on AI-driven data collaboration, with the host and a guest arguing that companies need secure ways to use and share data to improve marketing, shopping, and customer experience. A commodity strategist said oil is likely in a bear market that has bounced, with WTI stuck roughly between $80 and $100 a barrel, while a real estate strategist argued that higher-for-longer rates are reshaping commercial property, with retail, senior housing, data centers, and listed multifamily standing out.
Key takeaways
- Honeywell’s sale of its productivity business to Brady is part of a long-running effort to reshape its portfolio and potentially unlock value through more divestitures.
- Brady is paying $1.4 billion in cash for what will be its largest deal ever, and the acquisition should expand its industrial barcode and logistics footprint.
- The guest from LiveRamp said data collaboration is becoming central to AI-era commerce because companies need to use information safely while maintaining privacy and governance.
- The commodity strategist said oil markets are likely to stay range-bound near $80 to $100 a barrel, with demand destruction a bigger risk than supply shocks.
- The real estate strategist said listed REITs may offer better value than private markets in multifamily because public prices already reflect supply pressure.
Notable quotes
“Honeywell has been for years now trying to, you know, reshape its portfolio”
“Before this deal, they had about a $3.9 billion market cap and they're paying $1.4 billion cash”
“What LiveRamp does is it makes data safe and easy for companies to use”
“they can actually out-Amazon Amazon, out-Google Google, and create really interesting insights”
“I think the market's getting past that a little bit and realizing it's a bit of a battle of the bulls”
How the episode opens
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You're listening to the Bloomberg Intelligence podcast. Catch us live weekdays at 10:00 a.m. Eastern on Apple CarPlay and Android Auto with the Bloomberg Business app.
Listen on demand wherever you get your podcast or watch us live on YouTube. Honeywell to sell productivity business in a $1.4 billion deal. To break that down, Forest Landis Baker from Bloomberg News joins us here.
And I talked to us about Honeywell here because I'm looking at this stock that's off just a couple, you know, about a buck and a half here today. But it's up 19% year-to-date. What's Honeywell doing with this transaction?
Honeywell has been for years now trying to, you know, reshape its portfolio. They've never met a spin-off they don't like. They're spinning off their aerospace division.
They've already spun off their chemicals unit. That's a whole separate company called Solstice. So, they love doing deals.
They also, you know, do acquire things, but in this one, it's been a long simmering situation. They announced last July that they were exploring options for this unit along with another unit that they haven't sold yet. And we had been tracking this one for months.
We thought private equity would come in, but ultimately Brady Corporation, another public company based in Milwaukee, is swooping in for this and it's going to make it a much larger company. And it's not just Honeywell either. 3M has looked into selling assets, too.
What is it about these big industrials that at one point like to be big, like to be diversified, are now in love with the idea of slimming down, realigning their portfolios, divesting assets? What happened in the thinking? We're seeing it across industries, not just in the industrial space.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- honeywell divestiture
- data collaboration in ai
- agentic marketing
- oil price volatility
- commercial real estate outlook
Companies and tickers mentioned
- HON
- BRC
- Honeywell
- Brady
- LiveRamp
- CenterSquare
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Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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