Honeywell International Inc., the U.S. industrial conglomerate, is exploring a sale of its personal protective equipment unit that makes everything from gas masks to goggles to work boots, according to people familiar with the matter.
The company is working with an adviser to reach out to potential buyers, said the people, who asked not to be identified because discussions are private. The unit, which is part of its safety products business, could fetch as much as $2 billion, one of the people said.
No final decisions have been made and Honeywell could decide to retain the business. A representative for Honeywell declined to comment.
Honeywell, which builds everything from aircraft engines to controls for commercial buildings, is shifting its focus to industrial software while pruning non-core assets.
The Charlotte, North Carolina-based company in January revealed a disappointing sales forecast amid an industrial slowdown, which may force it to depend more on cost savings to boost profit.
The modest sales outlook is likely to spur questions about potential dealmaking by Honeywell, which has more than $10 billion in cash, equivalents and short-term investments. Chief Executive Officer Darius Adamczyk has slowed acquisitions, saying he’s unwilling to pay the high valuations that many targets are fetching.
— With assistance by Thomas Black
