Honeywell splitting into three after $5B investment
Pressure from activist investor Elliott Investment Management, who just bought a $5 billion stake in Honeywell International, has led the company to disclose plans to split into three independent firms. Separating the parts of the business will allow for reorganization into self-sustained units concentrating on aircraft, automation, and advanced materials. This change is aimed at folding processes together and enhancing value for shareholders.
In 2024 it is expected that the aerospace sector will have sales accounting for over 40% of Honeywell’s sales, while the company’s other sales will be split into other distinct sectors. The other industry, which earned almost $18 billion in revenue last year, will set their own separate body. The segment that earned advanced materials revenue that is likely to be cast off will bring in approximately $4 billion. These changes will likely go into effect during the second half of 2026; they will be tax-free for shareholders.
Honeywell’s decision aligns it with other major industrial giants. 3M and General Electric have also sought similar breakups to improve looser focus and increase the agility of their core businesses.
