Honeywell to spin off advanced materials business by 2026

Industrial conglomerate Honeywell International Inc. is spinning off its advanced materials unit into a separate publicly traded company, in a move to simplify its business to sharpen its focus on what it calls the three “compelling megatrends” of aviation, automation, and energy transition.

The division, valued at US$11 billion, supplies to industries that make bullet-resistant armour to pharmaceutical packaging. Its products range from Solstice brand refrigerants to industrial solvents and additives used in adhesives and asphalt.

“Given the sustained market demand for advanced specialty chemicals and materials …we are confident now is the right time for this business to grow independently,” CEO Vimal Kapur said in an Oct. 8 news release. “Through the powerful combination of strategic bolt-on acquisitions and subtractions of high quality but non-core business lines, we continue to enhance our portfolio mix and further tighten Honeywell’s alignment”.

The spin-off is likely to be completed by the end of 2025 or early 2026.