Brady represents a compelling long-term investment opportunity driven by data center demand and a transformative acquisition from Honeywell. The company's labeling and identification products are essential in industrial settings, with data center labeling accounting for 20% of Americas and Asia sales and growing 20% in the last reported quarter. Brady is acquiring Honeywell's Productivity Solutions and Services business for $1.4 billion, or 8 times trailing EBITDA, which is expected to add larger customers and generate $25 million in cost savings over three years. Wall Street anticipates over 14% annual earnings-per-share growth from 2025 to 2028, and the stock trades at less than 15 times estimated 2027 earnings, an attractive valuation for its growth prospects.
Brady CorporationAcquiring Honeywell's PSS business for $1.4B at 8x EBITDA, expected to add larger customers and $25M cost savings.
Honeywell International IncDivesting Productivity Solutions and Services business to Brady for $1.4B, a non-core asset sale.