Honeywell to spin off advanced materials business

CHARLOTTE, N.C. — Honeywell has announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company, targeted to be completed by the end of 2025 or early 2026.  

Vimal Kapur, chairman and CEO of Honeywell, said during a recent webcast with investors that it has been nearly a year since the company announced a reorganization to focus on the three megatrends of automation, aviation and energy transition. 

“As we continue to simply our portfolio, and shape it around these compelling megatrends, we have made several significant additions in the last year, committing about $9 billion toward high-growth acquisitions,” he said during the webcast. “Today, we have announced another significant step in that process with our plan to spin off our advanced materials business into a stand-alone, industry leading specialty chemicals company with nearly $4 billion in annual revenue.” 

Company officials say the spin-off will enable Honeywell to advance its strategic priorities of accelerating organic growth, evolving its Accelerator operating system and optimizing its portfolio. It will not impact its FY24 guidance. 

Honeywell is currently on pace to exceed its commitment to deploy at least $25 billion toward high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions through 2025. 

The spin-off follows four recent acquisitions made by Honeywell and announced as part of its disciplined capital deployment strategy. Those include Carrier Access Solutions, Civitanavi, CAES and the liquified natural gas (LNG) business of Air Products. Security Systems News (SSN) wrote about the acquisition of Carrier and CAES earlier this year. 

During Honeywell’s Q2 2024 earnings call, Kapur said the acquisitions were good examples of the company displaying its commitment to the pursuit of bolt-on acquisitions and upgrading the quality of the company and its financial profile.