(Bloomberg) -- Honeywell International Inc. plans to spin off its advanced materials division as the industrial conglomerate looks to streamline its holdings.
The company intends to separate the unit on a tax-free basis into a separately listed business by early 2026 at the latest, Honeywell said in a statement Tuesday.
The move would correspond with Chief Executive Officer Vimal Kapur’s plan to simplify Honeywell’s business around its three main segments of aviation, automation and the energy transition. The advanced materials business could be worth more than $10 billion as a standalone company, according to the Wall Street Journal, which first reported on the deal.
Shares of the Charlotte, North Carolina-based firm rose 2.9% before the market opened in New York on Tuesday. The stock fell about 3% this year through Monday, giving Honeywell a market value of $132 billion.
The materials business is on track for 2024 revenue of around $3.8 billion, or about 10% of Honeywell’s total. The division’s products range from Solstice brand refrigerants to industrial solvents and additives used in adhesives and asphalt.
The spinoff would come after a string of acquisitions by the group over the past several months, including the almost $5 billion purchase of Carrier Global Corp.’s security business, the $1.9 billion deal for defense technology company CAES Systems Holdings and the $1.8 billion acquisition of Air Products and Chemicals Inc.’s liquefied natural-gas process technology and equipment business.
By spinning off the advanced materials division, Honeywell would aim to create greater financial flexibility for dealmaking.
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