Honeywell (HON.US) to spin off its Advanced Materials business
1min read General manufacturer Honeywell (HON.US) said Tuesday it would spin off its Advanced Materials business and take it public in the US. The business produces products used in a wide range of fields from bulletproof armor to pharmaceutical packaging.
Honeywell's new CEO Vimal Kapur has been streamlining the company's portfolio in recent years and focusing on aerospace, automation and energy.
The Advanced Materials business accounted for 10% of Honeywell's total sales of $36.66 billion last year.
Honeywell expects the business to generate sales of $3.7 billion to $3.9 billion in fiscal 2024.
Honeywell said the planned spinoff is expected to be completed by the end of next year or early in 2026, without affecting the company's overall outlook.
Honeywell is valued at about $132 billion, providing products, software and services for various sectors including construction, aerospace and industrial applications.
Goldman is Honeywell's financial advisor.
As of writing, Honeywell traded up more than 3% before the market opened. The stock has fallen 1.5% this year, lagging the S&P 500.