One of the last remaining US industrial conglomerates, Honeywell follows in the footsteps of the manufacturing giant and splits into three independent companies. General Electric and Alcoa.
The company said Thursday it would separate it from its automation and aerospace technology business. Including previously announced plans to spinoff the advanced materials business, Honeywell will consist of three smaller entities, hoping that each will become more agile.
“The formation of three independent, industry-leading companies is built on the strong foundations we have created, each pursuing a customized growth strategy and unlocking great value for shareholders and customers. “We’re going to do this,” said Vimal Kapur, Chairman and CEO of Honeywell, in a statement.
Honeywell In December, he said he was considering spinning the Aerospace Division. The public announcement arrived about a month after Elliott Investment Management Stocks revealed Of more than $5 billion for aerospace, automation and materials companies. Elliott was pushing the Charlotte, North Carolina company to separate automation and aerospace operations.
The board of directors of Honeywell International Inc. has been exploring strategic options for the company since early 2024.
The company, which makes everything from eye solutions to barcode readers, is looking for ways to make themselves even more agile. Over the past year and a half, shortly after Kapur took over as CEO, Honeywell announced plans for Advanced Materials Business Spinoff, signed an agreement to sell the personal protective equipment business, and made several acquisitions.
The separation of automation and aerospace technology businesses is expected to be completed in the second half of 2026. The Advanced Materials Business spinoff is expected to be completed by the end of this year or early next year.
Like Honeywell, other US conglomerates are under pressure from shareholders to simplify the structure, allowing each segment of the company to move more freely and adapt to changes in their respective markets. Masu.
Iconic CEOs like General Electric’s Jack Welch built the American giant of corporates, with the belief that scale had occurred. However, these large companies were forced to compete with startups with a narrow focus and a more clearly defined set of goals.
Investors also wanted a clearer view of priorities within the sector, but this became more vague as the companies grew.
Metal Maker in 2015 Alcoa He said that the bauxite, aluminum and casting business has been separated from the engineering, transportation and global roll products business and has been split into two independent companies.
GE announced in 2021 that it will be split into three public companies focusing on aviation, healthcare and energy. At the time, the move was seen as a potential signal for the entire end of the conglomerate thanks to the move towards the digital economy.
Stocks fell almost 3% before the market opened Thursday.
