Honeywell plans refrigerants spin off
8th October 2024
USA: Honeywell plans to spin off its Advanced Materials business, which includes its Solstice refrigerants, into an independent, US publicly traded company.
Honeywell says it expects to execute the planned spin-off in a tax-free manner to its shareowners in a deal which is targeted to be completed by the end of 2025 or early 2026.
In a statement, Honeywell says that upon completion of the spin-off, the Advanced Materials business will be a sustainability-focused specialty chemicals and materials pure play with leading positions across fluorine products, electronic materials, industrial grade fibres, and healthcare packaging solutions.
In addition to its Solstice refrigerant technology, the Advanced Materials business manufactures a wide variety of specialty materials including a fibre used in high-end armour technology, Karl Fischer titration technology and high-performance pharmaceutical packaging.
Honeywell said the spin-off would simplify its portfolio around automation, aviation and energy transition.
Advanced Materials is expected to have FY24 estimated revenue of between $3.7bn and $3.9bn with an EBITDA margin greater than 25%.
“Given the sustained market demand for advanced specialty chemicals and materials around the globe, we are confident now is the right time for this business to grow independently, leveraging its leading technologies and deep customer relationships,” commented Honeywell chairman and CEO Vimal Kapur.
“Today’s announcement is the latest step in the optimisation of the Honeywell portfolio, a key priority I laid out in my first year leading the company,” he added.
