Brady 8-K/A Quantifies $1.4B Honeywell PSS Deal: Pro Forma EPS Falls to $1.75 From $4.30
BRC sits 19% above its 52-week low of $70.57.
Summary
Brady filed the financial statements and pro forma numbers for its $1.4B Honeywell PSS acquisition, showing pro forma diluted EPS of $1.75 versus $4.30 standalone and $84.2M of new annual interest expense.
Key Events · M&A and Partnerships · BRC
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PSS Financials Disclosed for First Time
Honeywell's PSS business reported net sales of $1,147M and net income of $105M for 2025, down from $1,202M and $167M in 2024.
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Pro Forma EPS Falls to $1.75
Combined FY2026 pro forma net income of $84M versus Brady standalone $205M; diluted Class A EPS drops from $4.30 to $1.75.
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Debt Financing Costs $84.2M Annually
$500M term loan, $304.7M revolver draw and $800M senior notes at 5.43%-5.90% produce pro forma annual interest expense of $84.2M.
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Purchase Price Allocation Sets Amortization
$720M of acquired intangibles and $913.8M of new goodwill imply roughly $111M of annual intangible amortization, mostly over 4-13 years.
Analysis · BRC · Manufacturing
This amendment supplies the financial statements and pro forma figures the original August 8-K left out, and they show the deal's real earnings cost. PSS generated $1,147M of sales in 2025 but only $105M of net income, and its first-half 2026 profit fell to $26M from $61M a year earlier. Combined with $84.2M of annual interest on the new debt, pro forma diluted EPS drops to $1.75 from Brady's standalone $4.30. The purchase price allocation also puts $720M into intangibles and $913.8M into goodwill, so reported earnings will carry roughly $111M of annual intangible amortization going forward. The strategic case still rests on the $6.25-$6.75 adjusted EPS guidance for FY27, which excludes these items; this filing is the first hard look at what the acquired business actually earns.
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In the 30 days to Oct 16, 2026, 29.4% of the 1495 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was -0.39%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, BRC was trading at $84.03 on NYSE in the Manufacturing sector, with a market capitalization of approximately $3.9B. The 52-week trading range was $70.57 to $99.29. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.