Last week Honeywell announced its intention to separate into three distinctive separate business groups, simply put:
- Honeywell Automation
- Honeywell Aerospace
- Advanced Materials, previously announced in October 2024
Honeywell Board of Directors have completed a comprehensive business portfolio evaluation led by Chairman and CEO Vimal Kapur and intend to pursue a full separation of Automation and Aerospace Technologies. The separation is intended to be completed in the second half of 2026.
Kapur commented: “Our simplification of Honeywell has rapidly advanced over the past year, and we will continue to shape our portfolio to create further shareholder value. We have a rich pipeline of strategic bolt-on acquisition targets, and we plan to continue deploying capital to further enhance each business as we prepare them to become leading, independent public companies.”
“Building on decades of innovation as its heritage, Honeywell Automation will create the buildings and industrial infrastructure of the future, leveraging process technology, software, and AI-enabled, autonomous solutions to drive the next generation of productivity, sustainability and safety for our customers,” Kapur added. “As a standalone company with a simplified operating structure and enhanced focus, Honeywell Automation will be better able to capitalize on the global megatrends underpinning its business, from energy security and sustainability to digitalization and artificial intelligence.”
“As Aerospace prepares for unprecedented demand in the years ahead across both commercial and defense markets, now is the right time for the business to begin its own journey as a standalone, public company,” Kapur continued. “Today’s announcement is the culmination of more than a century of innovation and investment in leading technologies from Honeywell Aerospace that have revolutionized the aviation industry several times over. This next step will further enable the business to continue to lead the future of aviation.”
The planned separations of Automation, Aerospace and Advanced Materials should create value for all stakeholders as each will benefit from:
- Simplified strategic focus
- Greater financial flexibility to pursue distinct organic growth opportunities throughout investment cycles
- Improved ability to tailor capital allocation priorities in alignment with strategic focus
- Focused boards of directors and management teams with deep domain expertise
- Distinct investment profiles that position each company to unlock greater long-term value for shareholders.
The planned separation of Automation and Aerospace is subject to certain customary conditions and regulations.
