Honeywell announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company.
The planned spin, which is targeted to be completed by the end of 2025 or early 2026, will be executed in a tax-free manner to shareowners, according to Honeywell. The Advanced Materials portfolio includes brands such as Solstice, Spectra, Hydranal and Aclar. The independent company will be positioned to be a leading provider of sustainability-focused specialty chemicals and materials with approximately $3.8 billion of revenue and an EBITDA margin greater than 25% expected in FY 2024.
"As a sector leader, this new company will have a greater strategic focus on innovation, enabling it to develop new, more sustainable solutions and products with next-generation chemistry to create further value for shareowners," said Vimal Kapur, Chairman and CEO of Honeywell.
The planned spin-off will enable Honeywell to progress its strategic priorities of accelerating organic growth, evolving its Accelerator operating system, and optimizing its portfolio. The decision follows four recent acquisitions — Carrier Access Solutions, Civitanavi, CAES and Air Products' liquified natural gas business — that Honeywell announced as part of its disciplined capital deployment strategy.