Headlines News
Honeywell to spin-off ADI, home businesses

The company provided this news by way of a portfolio review, indicating its home product portfolio and ADI distribution business would comprise a new company. A second publicly traded company will be its transportation systems business. The spin-offs are expected to be completed by the end of 2018.

“Today’s announcement marks the culmination of a rigorous portfolio review involving a detailed assessment of every Honeywell business. As part of that review, we analyzed numerous criteria, including growth outlook, financial performance, market dynamics, potential for disruption, and, most importantly, assessment of fit as a Honeywell business,” said Honeywell president and CEO Darius Adamczyk in a statement.

“The remaining Honeywell portfolio will consist of high-growth businesses in six attractive industrial end markets, each aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety. These businesses are best positioned to leverage Honeywell synergies from our technologies, financial and business models, and talent. Our simplified portfolio will offer multiple platforms for organic growth and margin expansion through further deployment of our world-class HOS Gold operating system and the Honeywell Sentience Platform. Honeywell will also have multiple levers for continuing to execute an aggressive capital deployment strategy, including a vigorous and disciplined M&A program,” added Adamczyk.

According to the company statement, the homes and global distribution business will “be a leader in the home heating, ventilation and air conditioning (HVAC) controls and security markets, and a leading global distributor of security and fire protection products.”

Anticipated annual revenue for that business is US$4.5 billion — it employs approximately 13,000 people. The spin-offs will not require a shareowner vote. They are subject to approval by the Board of Directors, assurance that the separation will be tax-free to Honeywell shareowners for U.S. federal income tax purposes, as well as other conditions.