Honeywell Spin-Off of Advanced Materials Business

(Reuters) – Honeywell announced on Tuesday its intention to spin off its advanced materials business, known for products ranging from bullet-resistant armor to pharmaceutical packaging, into an independent, publicly traded company in the U.S.

Market Reaction
Shares of the diversified manufacturer increased by 2.8% in premarket trading.

Strategic Focus
Honeywell's new CEO, Vimal Kapur, has been focusing on streamlining the company’s portfolio to concentrate on its aviation, automation, and energy sectors. The advanced materials business represented 10% of Honeywell's total sales of $36.66 billion last year.

Revenue Expectations
The advanced materials segment, which includes well-known brands such as Solstice and Hydranal, is projected to generate between $3.7 billion and $3.9 billion in revenue for FY24.

Timeline and Impact
The planned spin-off is anticipated to be finalized by the end of next year or early 2026 and is not expected to affect the company's overall outlook.

Company Profile
With a market capitalization of approximately $132 billion, Honeywell offers products, software, and services across various sectors, including construction, aerospace, and industrial applications.

Advisory
Goldman Sachs is serving as the financial adviser to Honeywell.