Honeywell, one of the few remaining US industrial conglomerates, will be divided into three companies

On By Littum

Honeywell, one of the last remaining US industrial conglomerates, will be divided into three independent companies that follow in the footsteps of manufacturing giants like General Electric and Alcoa.

The company said on Thursday that it will differ from its automation and aerospace technology companies. Included plans that were previously announced to spin its advanced material business, Honeywell will consist of three smaller units in the hope that they will each be more flexible.

“The formation of three independent, industry-leading companies is based on the powerful foundation we have created, places each to pursue tailor-made growth strategies and unlock a significant value for shareholders and customers,” said Honeywell Chairman and CEO Viable Kapur in A statement.

Honeywell had said in December that it was considering spinning its space department. The public message arrived about one month after Elliott Investment Management revealed a share of more than $ 5 billion in Aerospace, Automation and Materials Company. Elliott had been pushing for Charlotte, North Carolina, the company to separate her automation and space companies.

Board of Honeywell International Inc. Had investigated strategic opportunities for the company since earlier in 2024.

Dealers work on the floor of the New York Stock Exchange in New York, Tuesday 21 January 2025. (AP Photo/Seth Wenig)
Dealers work on the floor of the New York Stock Exchange in New York, Tuesday 21 January 2025. (AP Photo/Seth Wenig)

The company, which does everything from Eye Solution to Barcode readers, has sought ways to make themselves more quick. Over the past year and a half, just after Kapur took over as CEO, Honeywell has announced plans for Advanced Materials Business Spinoff, entered into an agreement to sell his personal protective equipment business and made several acquisitions.

The separation of Automation and Aerospace Technologies companies is expected to be completed in the second half of 2026. Spinoff of the advanced material business is expected to be completed by the end of this year or early next year.

Like Honeywell, other American conglomerates have been pressed by shareholders to simplify their structures, allowing each segment of the company to move more freely and adapt to changes in their respective markets.

Iconic CEOs such as Jack Welch of General Electric spent years building the company’s US Behemoths with the belief that with scale power came. Still, these massive companies were forced to compete with upstarts with a narrow focus and a more clearly defined set of goals.

Investors also wanted a clearer overview of the priorities within each department that became more cloudy as companies grew.

In 2015 Metal’s Maker Alcoa said it divided into two independent companies that separate its bauxite, aluminum and casting operations from its technique, transport and global rolled products.

In 2021, GE announced that it divided into three public companies focusing on aviation, health care and energy. At that time, the move was considered a potential signal of the end of conglomerates as a whole thanks to the movement towards a digital economy.

Shares fell almost 3%before the market opened Thursday.