MILWAUKEE — Brady Corporation announced that the Company has entered into a definitive agreement with Honeywell to acquire Honeywell’s Productivity Solutions and Services (“PSS”) business, a provider of mobile computers, barcode scanners and printing solutions, in an all-cash transaction for $1.4 billion, representing a transaction value of approximately 8x EBITDA for the twelve months ended December 31, 2025.
PSS offers a comprehensive suite of hardware, software, and service offerings that enable high-volume, automated data collection and tracking, with strong positions in mobile computers, barcode scanners, printing solutions, and voice guidance. PSS supports large enterprise customers across a diverse set of industries, including high-growth logistics, manufacturing, warehousing, and retail verticals. The PSS business is based in Fort Mill, South Carolina and operates globally with approximately 3,000 employees across North America, Europe, Latin America, and Asia. PSS generated sales of approximately $1.1 billion in 2025.
“The acquisition of Honeywell’s PSS business will significantly expand our portfolio into leading-edge mobility and scanning solutions, which are trusted by the largest transportation, warehousing and logistics companies in the world,” said Brady’s President and Chief Executive Officer, Russell R. Shaller. “The combination of Brady and PSS will create a more comprehensive solutions offering for a broad set of customers, bringing together Brady’s high-performance printing, software, scanning and specialty adhesive materials with PSS’s full suite of mobility, scanning and software. Our highly complementary portfolios will immediately expand our reach to include PSS’s enterprise customers, while providing all of our customers with a comprehensive solutions offering. In a world where data capture and tracking are increasingly essential to drive efficiency, adding PSS to our portfolio will ensure we are a partner of choice for customers of all sizes throughout a broad set of industries.”
Shaller continued, “Over the last several years, our focus on the consistent execution of our strategic priorities resulted in consistent organic sales growth, margin expansion and company-record EPS. The addition of PSS’s product portfolio will enhance our earnings power and expand our global business into new market opportunities. PSS has an impressive global team possessing deep expertise in high-volume, mission-critical operations, and we are excited to welcome them to Brady.”
Transaction Rationale
- Complementary product portfolio adds scale and extends Brady into adjacent workflows: PSS has strong positions in mobile computing, barcode scanning, RFID, and workflow software, complementing Brady’s leading position in its printer and specialty adhesive materials portfolios. PSS facilitates Brady’s exposure to a large installed base of enterprise customers, complementing Brady’s presence in product identification and safety solutions for small and medium-sized businesses in industrial end markets. Offering an expanded customer set a portfolio of end-to-end solutions also provides opportunities for commercial collaboration.
- Expanded addressable market across technology-enabled data capture and workflow solutions markets: The transaction provides access to the $9 billion productivity solutions market, better positioning Brady to benefit from secular tailwinds across automation, digitization, and asset tracking as global companies continue to seek automation and efficiency opportunities. Among other applications and industries, shifts in the retail environment trend toward multi-functional devices to serve increasing demand, and increased parcel volumes are expected to drive long-term demand in warehousing and delivery applications.
- Software and service revenue opportunity: PSS’s high-margin software and service offerings provide an opportunity to increase recurring revenue, improve long-term margin profile and strengthen customer relationships.
- Immediately accretive to Adjusted Diluted Earnings per Share* with strong cash generation to support deleveraging: PSS is expected to be double-digit accretive to Adjusted Diluted Earnings Per Share* within the first year following the close of the transaction. Brady expects to achieve a minimum of $25 million in annual run-rate cost synergies within three years of closing through improved operational efficiency. Incremental revenue synergies will be captured over the same period as Brady focuses on cross-selling opportunities. After accounting for transaction financing, Brady expects net debt-to-EBITDA* of approximately 2.5x, deleveraging to below 2.0x within two years following close. Brady is committed to maintaining a strong balance sheet to support its disciplined and consistent capital allocation strategy.
Transaction Details, Timing and Approvals
Brady expects to fund the transaction with cash on hand and new debt financing. The transaction has been unanimously approved by the Boards of Directors of both companies and is expected to close in the second half of calendar year 2026, subject to regulatory approvals and customary closing conditions.
Tagged with acquisition, Brady, Honeywell