Honeywell to Separate Automation and Aerospace Technologies

Honeywell announced that its Board of Directors has completed a comprehensive portfolio review initiated by Chairman and CEO Vimal Kapur a year ago and intends to fully separate the Automation and Aerospace Technologies business.

This separation, combined with the previously announced separation of the Advanced Materials business, will create three publicly traded industry leaders with different strategies and growth drivers. The separation is expected to be completed in the second half of 2026 and will be tax-free for Honeywell shareholders.

“The creation of three independent, industry-leading companies builds on the strong foundation we have created and will enable each to pursue tailored growth strategies and create significant value for shareholders and customers,” said Vimal Kapur, Honeywell Chairman and CEO.

“Our simplification of Honeywell has progressed rapidly over the past year, and we will continue to align our portfolio to create more value for shareholders. We have a rich pipeline of strategic add-on acquisition targets, and we plan to continue to deploy capital to further strengthen each business as they prepare to become leading independent public companies.”

“Honeywell Automation will build on decades of innovation to create the buildings and industrial infrastructure of the future, leveraging process technology, software and AI-enabled autonomous solutions to drive the next generation of productivity, sustainability and safety for our customers,” added Kapur.

“As an independent company with a simplified operating structure and enhanced focus, Honeywell Automation will be better positioned to capitalize on the global megatrends upon which its business depends, including energy security and sustainability, digitalization and artificial intelligence.”

“As aerospace companies prepare for unprecedented demand in commercial and defense markets over the next few years, now is the perfect time for the company to begin its journey as an independent public company,” continued Kapur. "Today's announcement is the culmination of more than a century of innovation and investment at Honeywell Aerospace in leading technologies that have revolutionized aviation many times over. This step will further position the company to continue to lead the future of aviation."

Elliott Partner Marc Steinberg and Managing Partner Jesse Cohn said: "With today's action, Honeywell will separate its Automation and Aerospace businesses into two market-leading businesses positioned for continued growth and value creation. The increased focus, alignment and strategic flexibility provided by this separation will provide Honeywell with opportunities to improve operations and enhance valuation. We look forward to continuing to support Vimal and the management team in executing the separation and delivering significant long-term value to Honeywell shareholders."

The Advanced Materials business will be a sustainability-focused specialty chemicals and materials business with leading positions in fluoroproducts, electronic materials, industrial fibers and medical packaging solutions. With revenues approaching $4 billion last year, Advanced Materials offers leading technologies with top brands, including the breakthrough low-global-warming Solstice hydrofluoroolefin (HFO) technology. As an independent company with a large domestic manufacturing base, it will benefit from a compelling investment profile and a more flexible and optimized capital allocation strategy.

The company is continuing to execute on its previously announced plan to spin off its Advanced Materials business, which it expects to be completed by the end of 2025 or early 2026. The three independent companies will be appropriately capitalized and have the financial flexibility to take advantage of future growth opportunities. Both Honeywell Automation and Honeywell Aerospace are expected to maintain strong investment-grade credit ratings.

Goldman Sachs & Co. LLC served as lead financial advisor to Honeywell for its strategic portfolio review. Centerview Partners LLC also provided financial advice to Honeywell. Skadden, Arps, Slate, Meagher & Flom LLP provided outside legal counsel.