Honeywell International Inc. announced today that it is considering separating its aerospace business, following Elliott Investment Management’s call for the company’s breakup.
Honeywell CEO Vimal Kapur stated “Since aligning our business this past January to three compelling megatrends – Automation, the Future of Aviation and Energy Transition – we have been moving swiftly and decisively to optimize the Honeywell portfolio to deliver superior growth and drive incremental shareholder value. At the same time, we have been evaluating more transformational changes” He added, “Following the portfolio enhancements announced earlier this year, Honeywell is now well-positioned for significant transformational alternatives, and we are continuing our deeper, more granular exploration of their feasibility and possible timing.”
In a statement from Elliott today, Partner Marc Steinberg and Managing Partner Jesse Cohn said; “Elliott welcomes Honeywell’s announcement today of its ongoing review of strategic alternatives, including the separation of its Aerospace business. We believe the portfolio transformation Vimal and his team are leading represents the right course for Honeywell, and we look forward to the upcoming completion of the review and to supporting Honeywell as it implements the necessary steps to realize its full value.”
Elliott had previously disclosed holding a position of over $5 billion in Honeywell and urged management to split the company into two focused entities: one for aerospace and another for automation.
Following the announcement, Honeywell’s shares rose 3% in pre-market trading, with an overall increase of 8.5% this year.
By CEO NA Editorial Staff
