Honeywell International Inc. is in advanced discussions to sell its warehouse and workflow solutions business to American Industrial Partners, according to people familiar with the matter. The potential divestiture marks another step in Honeywell's ongoing effort to streamline its portfolio and focus on core industrial operations. AIP, a private equity firm specializing in industrial acquisitions, could provide the specialized capital and expertise needed to expand the logistics-focused unit.

The warehouse and workflow solutions business provides automation technology and services for distribution centers and supply chain operations. While the unit contributes to Honeywell's broader automation segment, it represents a smaller piece of the conglomerate's massive portfolio, which spans aerospace, building technologies, and performance materials. Selling non-core assets has become a standard playbook for Honeywell as it seeks to sharpen its strategic focus.

American Industrial Partners has a track record of acquiring industrial businesses and driving operational improvements. The firm targets companies with strong market positions in manufacturing and logistics sectors. This deal would fit squarely within that investment thesis, giving AIP exposure to the growing warehouse automation market as e-commerce demand continues driving demand for supply chain infrastructure.