Honeywell to Spin Off Its Resins and Chemicals Business
May 12 2016 - 8:11AM
Dow Jones News
By Austen Hufford
Honeywell International Inc. said Thursday that it would spin
off its $1.3 billion resins and chemicals business into a
stand-alone, publicly traded company.
The deal is expected to be completed by early 2017 and is
subject to certain conditions and the assurance that the spinoff
will be tax-free to Honeywell shareowners. The spun-off company
will be called AdvanSix and its Chief Executive will be Erin Kane,
who is currently the general manager of the resins and chemicals
unit.
Honeywell said there is currently no impact to its financial
guidance.
The resins and chemicals business makes Nylon 6, a polymer resin
used to produce engineered plastics, fibers, filaments and films.
Those products are used to produce automotive and electronic
components, carpets, sports apparel, fishing nets, and packaging.
The segment also produces ammonium-sulfate fertilizers and chemical
intermediates, such as phenol and acetone. It is also the largest
single-site producer of caprolactam, which is used to make Nylon
6.
The move to spin off some assets comes two months after the New
Jersey-based company withdrew a $90 billion bid to beef up by
buying fellow industrial giant United Technologies Corp. It backed
down from the massive tie up after facing opposition from the
target, antitrust regulators and major customers.
Last month. Honeywell said its board authorized the repurchase
of as much as $5 billion of the industrial conglomerate's shares as
part of its strategy to deploy cash.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
May 12, 2016 08:56 ET (12:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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