Honeywell will sell its Productivity Solutions and Services (PSS) business to Brady Corporation for $1.4 billion in cash, continuing the industrial conglomerate’s multi-year portfolio reshaping ahead of its planned breakup.

The PSS unit — which produces barcode scanners, mobile computers and related warehouse and logistics technologies — generated more than $1 billion in revenue in 2025. It competes in markets alongside companies like Zebra Technologies and has been part of Honeywell’s Safety and Productivity Solutions segment.

For Brady, a smaller identification and workplace safety solutions provider, the acquisition is transformative. The deal is expected to increase Brady’s annual revenue to roughly $2.7 billion and significantly expand its presence in warehouse automation and frontline productivity technologies.

Honeywell executives framed the divestiture as another step in sharpening focus on core businesses as the company prepares to separate into independent aerospace and automation-focused entities, a move expected in 2026. CEO Vimal Kapur said the sale helps accelerate value creation and aligns the company more tightly around its core operations.

The transaction follows Honeywell’s 2025 announcement that it was exploring strategic alternatives for its PSS and Warehouse and Workflow Solutions businesses, both tied to logistics and distribution markets. That review was part of a broader restructuring effort aimed at simplifying the portfolio ahead of its planned separation into standalone companies.

Honeywell has been actively pruning non-core assets as part of that effort. In addition to the PSS divestiture, the company has signaled it is evaluating options for its warehouse automation business and previously outlined plans to spin off other segments tied to advanced materials and aerospace operations.

The PSS sale is expected to close later in 2026, subject to customary regulatory approvals.