Honeywell prepares to spin off businesses

NEW YORK — Honeywell International, Inc. plans to spin off noncore assets and create at least two new publicly listed companies, as the US industrial conglomerate seeks to streamline its business, according to people familiar with the matter.

The move would represent the first major shakeup at the Morris Plains, New Jersey-based company since Darius Adamczyk succeeded David Cote as chief executive in April. It comes after Honeywell said in September it would raise its annual dividend by 12%.

The sources said on Sunday that while Honeywell would defy calls by one of its shareholders, activist hedge fund Third Point LLC, to spin off its aerospace division, it would still seek to carve out assets worth several billions of dollars.

Honeywell is considering placing its turbochargers business, which produces components that improve the performance and efficiency of cars and trucks, into one of the newly created companies, the sources said. Honeywell lists turbochargers as part of its aerospace business.

The sources did not disclose which other assets Honeywell was looking to spin off and asked not to be identified because the deliberations were confidential.

Honeywell is hoping to unveil the spin-off plan as early as this week, though the announcement could be delayed, the sources added. —