Honeywell International Inc., one of the last industrial groups in the US, is planning to divide into three independent companies, pushing for a lean corporate structure and reflects the widespread trend of breaking industrial veterans with pushing for a lean corporate structure. .
Charlotte, the neck-based firm announced on Thursday that it would separate its aerospace and automation businesses, a step that follows its first disclosure plans to shut down its advanced material division. The breakup is expected to be completed in the stages, with advanced material spinoff in early 2025 and with aerospace and automation division in the late 2026.
“The formation of three independent, industry-agron companies is built on the powerful foundation created by us, which is to carry forward development strategies and unlock the important value for shareholders and customers,” Chairman and CEO Vimal Kapoor Said.
The decision comes amid growing shareholder pressure. In December, Honeywell revealed that he was considering dividing his aerospace unit. A month later, Activist Hedge Fund Elliot Investment Management revealed more than $ 5 billion in the company and advocated a breakup.
Honeywell is on a strategic overhaul as Kapoor took a rudder in mid -2012. In the last 18 months, the company has taken steps to streamline operations, including a series of pending sales and acquisitions of its individual protective equipment business, which aims to promote its main segments.
The history of Honeywell is marked by a series of strategic merger and expansion, which has shaped it in a global industrial power plant. The company saw its origin in 1885, when Swiss inventor Albert Butz established the Butz Thermo-Electric Regulator Company in Miniapolis, leading the initial automatic thermostat technology. By 1927, Butz’s business was merged with the Honeywell Heating Specialty Company, established by Mark Honeywell in Indiana, which built the foundation of today’s Honeywell, Miniyapolis-Honivel Regulator Company- today.
In the next several decades, Honeywell expanded aerospace, industrial automation and defense technologies, especially during World War II, when it became a major supplier of accurate equipment and military systems. In the 1950s, a step in computing and the Cold War era, including major defense contracts, and diversification were observed in the later period.
One of the largest twist points came in 1999, when Honeywell merged with allidsignal, a major aerospace and chemical group. Although alliedsignal was technically acquired, the joint company retained the name Honeywell due to the strength of its brand. This merger strengthened the position of Honeywell as a leader in avionics, automation and performance materials.
In recent years, Honeywell has focused his focus, shedting consumer-supporting businesses such as home heating and transport systems. Its latest step to break into three different companies reflects a comprehensive tendency of industrial veterans who destroy their multi-industry empires in favor of more specific, agile firms.
The stock market gave a cooled response to the announcement, in which Honeywell’s shares fell nearly 5.6 percent on Thursday.
