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Corporate Score 45 Neutral

BMO Leads $1.8 Billion Financing for Honeywell Asset Divestiture to Brady Corp

Apr 27, 2026 19:42 UTC
HON, BMO
Short term

Bank of Montreal is spearheading a debt package to fund Brady Corp's acquisition of Honeywell's productivity solutions business. The arrangement includes a $1 billion term loan and a potential $800 million bond issuance.

  • BMO Capital Markets leading the $1.8 billion debt arrangement
  • Honeywell divesting its productivity solutions and services business
  • Brady Corp identified as the acquirer of the business unit
  • Syndication of a $1 billion term loan to Wall Street lenders
  • Potential $800 million issuance in investment-grade or private markets

BMO Capital Markets has taken the lead role in arranging a $1.8 billion debt facility to support the acquisition of Honeywell International Inc.’s productivity solutions and services division by industrial manufacturer Brady Corp. The transaction represents a strategic divestiture for Honeywell as it streamlines its corporate portfolio, while Brady Corp expands its industrial capabilities through the acquisition of the specialized business unit. According to sources familiar with the matter, the financing structure consists of a $1 billion term loan, which BMO intends to syndicate among other Wall Street lenders. This syndication process allows the lead bank to distribute the credit risk across multiple financial institutions. In addition to the term loan, BMO is currently evaluating the sale of an $800 million debt component. The bank is weighing whether to offer this slice to investors via the investment-grade bond market or through private-placement markets. While the deal highlights continued M&A activity within the industrial sector, the immediate market impact is expected to be limited to the specific corporate structures of the involved parties and the lending banks participating in the syndication.

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