American Industrial Partners has agreed to acquire Honeywell's warehouse and workflow solutions business, marking another carve-out deal in the industrial automation space. The transaction is expected to close in the second half of 2026. No financial terms were disclosed.

The business, known as WWS, generated approximately $935 million in revenue in 2025. Murray Grainger, a partner at AIP, said the company is well-positioned to benefit from growing demand for warehouse automation, driven by e-commerce expansion, labor shortages, and supply chain digitization trends.

Honeywell, headquartered in Charlotte, North Carolina, is shedding the unit as part of its broader portfolio optimization. The deal adds to AIP's industrial holdings and reflects continued private equity interest in automation technologies that address supply chain inefficiencies.