Honeywell International is currently mulling over a potential spin-off of its aerospace division, with its board deeply engaged in reviewing the company’s overall business portfolio. This news on Monday prompted a nearly 3% rise in the conglomerate’s stock during premarket trading.
Since Vimal Kapur took the helm last year, he has been focused on repositioning Honeywell’s portfolio to align with major industry trends like automation, aviation, and the transition to sustainable energy sources.
The board has already made notable strides, and Honeywell plans to provide a detailed update alongside its fourth-quarter earnings report, as disclosed on Monday.
This initiative follows the urging from Elliott Investment Management, an activist investor that, after acquiring a stake worth over $5 billion in Honeywell in November, advocated for the separation of its aerospace and automation sectors.
Elliott was supportive of the direction being taken, stating, “We believe the portfolio transformation Vimal and his team are leading represents the right course for Honeywell.”
Back in November, Honeywell also announced plans to sell its personal protective equipment segment to Protective Industrial Products for a cash deal valued at approximately $1.33 billion.
As part of its strategic transformation, Honeywell has acquired Carrier’s security business for $4.95 billion and purchased CAES Systems, a company specializing in aerospace and defense, for $1.9 billion.
This report was compiled by Shivansh Tiwary and Nathan Gomes in Bengaluru, with editing by Shilpi Majumdar.
