Honeywell has completed a comprehensive portfolio review and announced its intention to separately spin off its Homes product portfolio and ADI Global Distribution business, as well as its Transportation Systems business, into two stand-alone, publicly-traded companies.
The planned separation transactions are intended to be tax-free spins to Honeywell shareowners for US Federal Income Tax purposes and are expected to be completed by the end of 2018.
Speaking about the decision, which was unveiled on Tuesday 10 October, Darius Adamczyk (Honeywell’s President and CEO) commented: “This decision marks the culmination of a rigorous portfolio review process involving an assessment of every Honeywell business. As part of that review, we analysed in detail numerous criteria, including growth outlook, financial performance, market dynamics, potential for disruption and, most importantly, ‘assessment of fit’ as a Honeywell business.”
Adamczyk continued: “The remaining Honeywell portfolio will consist of high-growth businesses in six attractive industrial end markets, each aligned to global mega trends including energy efficiency, infrastructure investment, urbanisation and safety. These businesses are best positioned to leverage Honeywell synergies from our technologies, financial and business models and talent.”
According to Adamczyk, the simplified portfolio will offer multiple platforms for organic growth and margin expansion through further deployment of the company’s “world-class” HOS Gold operating system and the Honeywell Sentience Platform.