Honeywell to split into 3, spin off automation and aerospace businesses

Honeywell on Thursday announced the completion of a comprehensive portfolio review, which would lead to the hiving off of its automation and aerospace businesses. Along with the earlier spin-off of its specialty chemicals business, Honeywell will now be split into three separate entities, called Honeywell Automation, Honeywell Aerospace and Honeywell Advanced Materials.

The business portfolio review, launched a year ago by chairman and CEO Vimal Kapur, would enable the creation of three leading companies engaged in automation, aerospace and specialty chemicals and materials.

Honeywell Automation will be leading provider of automation technology and products globally while Honeywell Aerospace will offer futuristic technology and systems in aviation globally. Honeywell Advanced Materials, the spin-off of which was announced earlier, will be a leading provider of sustainability-focused specialty chemicals and materials, the company stated in a release.

Honeywell expects to complete the separation of automation and aerospace businesses that will come tax-free for the company’s shareholders by the second half of 2026.

He said Honeywell Automation will leverage process technology, software, and AI-enabled, autonomous solutions to create the buildings and industrial infrastructure of the future, heralding next generation of productivity, sustainability and safety. With 2024 revenue of $18 billion, Honeywell Automation expects to maintain global scale. 

Honeywell Aerospace will address the growing demand for technology in both commercial and defence markets. With a large global installed base and $15 billion in annual revenue in 2024, Honeywell Aerospace hopes to emerge as one of the largest suppliers of technology and systems for civil and defence aircraft manufacturers.

Honeywell Advanced Materials business, which is a leader in fluorine products, electronic materials, industrial grade fibers, and healthcare packaging solutions, will focus on sustainable growth. The division reported 2024 revenues of $4 billion. 

Chairman and CEO Vimal Kapur said Honeywell will continue to ramp up capabilities of the three companies both by developing and deploying cutting-edge technologies and through acquisitions.

The company, he said, will continue to invest capital in strategic acquisitions, many of which are already in the pipeline, to equip the three businesses to become leading, independent public companies.

Honeywell plans to deploy at least $25 billion in high-return capital expenditures, dividends, opportunistic share purchases and accretive acquisitions through 2025, he added.