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Honeywell International announced plans to spin off its home and transportation businesses into two new separate companies.
The new Homes and Global Distribution business will include residential thermostats and security and fire-protection products, would generate annual revenue of $4.5 billion and employ 13,000 people.
The new Transportation Systems business will be a leader in turbocharger technologies with best-in-class engineering capabilities for a broad range of engine types across global automobile, truck and other vehicle markets. The business is expected to have annualized revenue of approximately $3 billion and employ 6,500 employees.
“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.
The company has been under pressure recently by activist investors who had wanted the company to spin off its aerospace division.
More details here.