Honeywell Advanced Materials to become pure-play company

Honeywell has announced plans to spin off its Advanced Materials business to its shareholders as an independent, publicly traded company by early 2026. This will enable it become a pure-play speciality chemicals and materials producer, with strong positions in fluorine products, electronic materials, industrial grade fibres and healthcare packaging.

The firm said that the business “will be well-positioned to benefit from an enhanced strategic focus and the financial flexibility to pursue innovation and growth opportunities through investment cycles”. Both it and the remaining business, Honeywell added, will also have an improved ability to customise capital allocation priorities in alignment with their strategic focus; and distinct investment profiles from which to unlock greater long-term shareholder value.

Advanced Materials is projected to have revenues of $3.7-3.9 billion in the 2024 financial year, with an EBITDA margin over 25%. Vimal Kapur, chairman and CEO, said that this was the latest step in the optimisation of the portfolio. This has already seen the acquisitions of Carrier Access Solutions, Civitanavi, CAES and Air Products' liquefied natural gas business.

“As a sector leader, this new company will have a greater strategic focus on innovation, enabling it to develop new, more sustainable solutions and products with next-generation chemistry to create further value for shareowners,” Kapur added.