Honeywell: to spin off homes and transportation businesses.
(CercleFinance.com) - On Tuesday, diversified US manufacturer Honeywell confirmed that it plans to spin off certain assets into two independent, publicly-traded companies by the end of 2018 to maximize shareowner value.
The Morris Plains, New Jersey-based company said the first entity will include home heating, ventilation and air conditioning (HVAC) controls and security businesses, as well as the distribution of security and fire protection products.
This unit represents annualized revenue of approximately 4.5 billion dollars, and approximately 13,000 employees, Honeywell said.
The other company will hold the transportation systems business, in particular turbocharger technologies for automobile, and truck markets. The business is expected to have annual revenue of around 3 billion dollars and a workforce of approximately 6,500 employees.
Honeywell said the spinoff would be tax-free to Honeywell shareowners and will not require a vote from shareholders.
The remaining Honeywell will consist of a "simplified" portfolio in six industrial end markets, mostly in aerospace, aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety, the firm said.
"These businesses are best positioned to leverage Honeywell synergies from our technologies, financial and business models," the group said.
In early trading, Honeywell shares are down slightly (-0.1%) at 143.5 dollars.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The Morris Plains, New Jersey-based company said the first entity will include home heating, ventilation and air conditioning (HVAC) controls and security businesses, as well as the distribution of security and fire protection products.
This unit represents annualized revenue of approximately 4.5 billion dollars, and approximately 13,000 employees, Honeywell said.
The other company will hold the transportation systems business, in particular turbocharger technologies for automobile, and truck markets. The business is expected to have annual revenue of around 3 billion dollars and a workforce of approximately 6,500 employees.
Honeywell said the spinoff would be tax-free to Honeywell shareowners and will not require a vote from shareholders.
The remaining Honeywell will consist of a "simplified" portfolio in six industrial end markets, mostly in aerospace, aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety, the firm said.
"These businesses are best positioned to leverage Honeywell synergies from our technologies, financial and business models," the group said.
In early trading, Honeywell shares are down slightly (-0.1%) at 143.5 dollars.
Copyright (c) 2017 CercleFinance.com. All rights reserved.