Honeywell to spin off Advanced Materials business into publicly traded company

Honeywell announced a plan to spin off its Advanced Materials business into an independent, U.S. publicly traded company, which is targeted to be completed by the end of 2025 or early 2026. Honeywell expects to execute the planned spin in a tax-free manner to its shareowners. The planned spin-off of the Advanced Materials business follows four recent acquisitions Honeywell announced as part of its capital deployment strategy. Honeywell is currently on pace to exceed its commitment to deploy at least $25B toward capital expenditures, dividends, share purchases and accretive acquisitions through 2025, with approximately $9B deployed towards acquisitions to date in 2024. Following the completion of the planned spin of the Advanced Materials business. Upon completion of the spin-off, the Advanced Materials business will be a sustainability-focused specialty chemicals and materials pure play with positions across fluorine products, electronic materials, industrial grade fibers, and healthcare packaging solutions. Advanced Materials is expected to have FY24 estimated revenue of between $3.7B and $3.9B with an EBITDA margin greater than 25%. The planned spin-off transaction is targeted for completion by the end of 2025 or early 2026, subject to certain customary conditions, including, among others, the filing and effectiveness of applicable filings with the U.S. Securities and Exchange Commission, assurance that the spin-off of the Advanced Materials business will be tax-free to Honeywell’s shareowners, receipt of applicable regulatory approvals and final approval by Honeywell’s board of directors. Approval by Honeywell’s shareowners is not required. The spin transaction will not impact Honeywell’s FY24 guidance. As the process progresses, Honeywell intends to provide additional information regarding the future management team and board of directors for the independent Advanced Materials company.