Honeywell: The Restructuring Plan, Just Icing On The Cake

On October 10, 2017, Honeywell (HON) announced plans to spin off assets that are expected to bring in approximately $7.5B of revenue in fiscal 2017. Management has decided to spin off the Transportation Systems and Homes And Global Distribution business units into two separately traded public companies by the end of 2018. The transactions are expected to be tax-free spin offs and management believes that the new structure will allow for them to better manage the remaining businesses - Aerospace, Building Technologies, Performance Material And Technologies, and Safety And Productivity Solutions - while also putting the newly created companies in a better position to unlock shareholder value.

HON shares finished the trading day slightly down on the restructuring news but it is important to remember that the stock has been outperforming the broader market by a wide margin so far in 2017.


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