Honeywell explores potentially spinning off aerospace segment

Honeywell is exploring separating Honeywell Aerospace Technologies into a standalone business under pressure from minority stakeholder Elliott Investment Management. In a 16 December update from the board of the US conglomerate, Honeywell says that it is undertaking at the direction of CE Vimal Kapur a “comprehensive portfolio evaluation of alternatives for unlocking shareholder value”, including possibly spinning off its aerospace unit. Elliott, which holds a $5b stake in Honeywell, is pushing for such a change as it seeks greater returns. Honywell says the concept has progressed significantly in recent weeks, as it expects to deliver an update alongside its fourth quarter financial report next month. Kapur says the company is considering “transformational changes” as it aligns with the “mega trends” of automation, the energy transition and future flight technologies. ”Since aligning our business this past January… we have been moving swiftly and decisively to optimise the Honeywell portfolio to deliver superior growth and drive incremental shareholder value,” he says. Honeywell has already signalled its intention to spin off its advanced materials unit into a separate business and agreed to divest its personal protective equipment business, with its aerospace unit seemingly next in line. The move would mirror that of GE Aerospace, which in April completed its long-planned divestiture from the once-mighty US conglomerate General Electric. Phoenix-based Honeywell Aerospace Technologies produces a range of propulsion, flight control and avionics technologies. The manufacturer says that its aerospace portfolio is among the world’s “broadest and most innovative… spanning take-off to landing”, with defence, urban air mobility, air cargo, business jet, helicopter and space segments.<br/>