Bank of Montreal’s investment banking division is leading a $1.8 billion debt financing package to support Honeywell International Inc.’s planned sale of its productivity solutions and services business to Brady Corp. The deal marks one of the larger corporate divestitures in the industrial sector this year, with BMO arranging comprehensive financing for the buyer.

Brady Corp., a Wisconsin-based manufacturer specializing in industrial identification and safety products, is acquiring the Honeywell unit as part of a strategic expansion into workplace productivity services. The transaction structure involves significant leverage, with the BMO-led debt facility forming the backbone of the purchase price financing.

The deal reflects continued merger-and-acquisition activity in the industrial manufacturing space, as companies seek to streamline portfolios and focus on core competencies. Honeywell’s exit from the productivity solutions segment allows the conglomerate to reduce debt while Brady gains scale through the acquisition.