Honeywell to separate automation and aerospace divisions, creating 3 separate companies
Honeywell has announced plans to pursue a full separation of its Automation and Aerospace Technologies divisions. This announcement, in conjunction with the company’s previously announced plan to spin off Advanced Materials, will result in the creation of three new companies. Each company will have its own distinct strategy, a simplified focus, greater financial flexibility, its own board of directors and management team, and unique growth drivers. The separation plan is expected to be completed in 2026. Below is a breakdown of the three companies.
- Honeywell Aerospace provides technology and solutions for the commercial and defense aerospace industry. This includes aircraft propulsion, cockpit and navigation systems, and auxiliary power systems. In 2024, the company had $15 billion in revenue.
- Advancd Materials is a sustainability-focused company specializing in chemicals and materials, including fluorine products, electronic materials, industrial-grade fibers, and healthcare packaging solutions. In 2024, the company had nearly $4 billion in revenue.
- Honeywell Automation provides technologies, solutions, and software to connect assets, people and processes to power digital transformation. In 2024, the company had $18 billion in revenue.
What people are saying
In a recent quote, Vimal Kapur, Chairman and CEO of Honeywell, said, "The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers. 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."
Elliott Partner Marc Steinberg and Managing Partner Jesse Cohn added, "With today's action, Honeywell will be separating its Automation and Aerospace businesses into two market-leading enterprises poised for sustained growth and value creation. The enhanced focus, alignment, and strategic agility enabled by this separation will allow Honeywell to realize the opportunity for operational improvement and valuation upside. We look forward to continuing to support Vimal and the management team as they execute on the separation and deliver significant long-term value to Honeywell's shareholders."
More manufacturing business news
It's just business: Manufacturing moves from Siemens, PPG, Pentair, and more
In this industry roundup, we dive into the business decisions that keep manufacturers competitive.
It's just business: Manufacturing moves from Boeing, Integrated Power Services, Relayr, and more
In this industry roundup, we shine a spotlight on the decision makers who are reshaping the manufacturing sector every day.
It's just business: Manufacturing moves from Saint-Gobain, Intertechnology, Maxcess, and more
In this industry roundup, we shine a light on how manufacturers are changing company policies and practices to stay competitive.