Honeywell Files for Spin-Off of Advanced Materials Business to Enhance Shareholder Value

Honeywell International filed a Form 10 registration statement with the SEC for the spin-off of its Advanced Materials business into an independent company named Solstice Advanced Materials Inc. The move aims to position Solstice as a leading specialty materials company with strong market positions in refrigerants, semiconductor materials, and healthcare packaging solutions. The spin-off is expected to enhance shareholder value and capitalize on growth trends in sustainability and advanced computing.

Honeywell International Inc. (NASDAQ: HON) has filed a Form 10 registration statement with the U.S. Securities and Exchange Commission (SEC) for the planned spin-off of its Advanced Materials business into an independent company named Solstice Advanced Materials Inc. The spin-off is expected to position Solstice as a leading specialty materials company with strong market positions in refrigerants, semiconductor materials, and healthcare packaging solutions.

The Form 10 filing marks a significant milestone as Solstice prepares to become a standalone public company in the fourth quarter of 2025. The spin-off aims to enhance shareholder value and capitalize on growth trends in sustainability and advanced computing. Solstice is expected to be listed on the Nasdaq Stock Exchange under the ticker symbol "SOLS."

Solstice Advanced Materials will be a differentiated advanced materials company, generating net sales of $3.8 billion, net income of $0.6 billion, and adjusted EBITDA of $1.1 billion in 2024. The company will be organized into two operating segments: Refrigerants & Applied Solutions (RAS) and Electronic & Specialty Materials (ESM). The RAS segment generated net sales of $2.7 billion in 2024, while the ESM segment generated net sales of $1.0 billion.

The spin-off is expected to be tax-free for Honeywell shareholders for U.S. federal income tax purposes. Honeywell's CEO, Vimal Kapur, stated that the spin-off marks a pivotal step toward the exciting launch of Solstice as an innovation-led independent company. The company is well-positioned to unleash growth and unlock substantial long-term value for all stakeholders.

Solstice will host an Investor Day on October 8, 2025, in New York City to provide details on its business and value creation strategy. The event will highlight Solstice's differentiated product portfolio, including Solstice low-global-warming-potential refrigerants, Spectra high-performance fibers, Hydranal analytical reagents, and Aclar pharmaceutical packaging solutions.

The Form 10 filing is subject to change and will be made final prior to the effective date. For more information on the pending spin-off, investors can visit Honeywell's Investor Relations website.

References:

[1] https://www.marketscreener.com/news/honeywell-announces-filing-of-form-10-registration-statement-and-upcoming-investor-day-for-planned-s-ce7c50dad88df727