U.S. conglomerate Honeywell International (HON) plans to spinoff its advanced materials business that makes products ranging from body armor to pharmaceutical packaging.
The materials business will be turned into an independent, publicly traded company in the U.S., said the company.
The spinoff is expected to be completed by the end of 2025 and does not impact Honeywell’s business outlook.
Honeywell chief executive officer (CEO) Vimal Kapur has said that his goal is to streamline the company’s portfolio and shift the focus toward aviation and energy.
Honeywell has a market capitalization of $132.41 billion U.S. and supplies products, software and services to various sectors, including construction, aerospace and oil and natural gas.
The materials business accounted for 10% of Honeywell's sales of $36.66 billion U.S. in 2023.
Honeywell said that it expects the materials business, which includes brands such as Solstice and Hydranal, to generate nearly $4 billion U.S. in revenue during the current fiscal year.
The stock of Honeywell International has risen 9% over the past 12 months and currently trades at $203.33 U.S. per share.
