Honeywell International Inc., one of the last remaining U.S. industrial conglomerates, will split into three independent companies, following in the footsteps of manufacturing giants like General Electric and Alcoa.
The company, parent of Honeywell New England in Woonsocket and with offices in Cranston, North Smithfield and Providence, said Thursday that it will separate from its automation and aerospace technologies businesses. Including plans announced earlier to spin off its advanced materials business, Honeywell will consist of three smaller entities in hopes that they will each be more agile.
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“The formation of three independent, industry-leading companies builds on the powerful foundation we have created, positioning each to pursue tailored growth strategies, and unlock significant value for shareholders and customers,” Honeywell Chairman and CEO Vimal Kapur said in a statement.
Honeywell had said in December that it was considering spinning off its aerospace division. The public announcement arrived about one month after Elliott Investment Management revealed a stake of more than $5 billion in the aerospace, automation and materials company. Elliott had been pushing for the Charlotte, N.C., company to separate its automation and aerospace businesses.
The board of Honeywell International Inc. had been exploring strategic options for the company since earlier in 2024.
The company, which makes everything from eye solution to barcode readers, has been seeking ways to make itself more nimble. Over the past year and a half, just after Kapur took over as CEO, Honeywell has announced plans for the advanced materials business spinoff, entered into an agreement to sell its personal protective equipment business, and made several acquisitions.
The separation of the automation and aerospace technologies businesses is expected to be completed in the second half of 2026. The spinoff of the advanced materials business is anticipated to be completed by the end of this year or early next year.
Like Honeywell, other U.S. conglomerates have been pressured 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 like Jack Welch of General Electric spent years building corporate American behemoths with the belief that with scale came power. Yet those massive companies were forced to compete with upstarts with a narrow focus and a more clearly defined set of goals.
Investors also wanted a more clear view of the priorities within each division, which became more murky as the companies grew.
In 2015 metals maker Alcoa said that it was splitting into two independent companies, separating its bauxite, aluminum and casting operations from its engineering, transportation and global rolled products businesses.
GE announced in 2021 that it was dividing itself into three public companies focused on aviation, health care and energy. At the time, the move was viewed as a potential signal of the end of conglomerates as a whole thanks to the move toward a digital economy.
Honeywell shut down its Smithfield factory in November 2023. Honeywell opened the facility in 1980. During the onset of the COVID-19 pandemic, it hired nearly 500 workers to help increase production of N95 face masks, earning the facility a special mention in a daily White House briefing in 2020. In 2021, as demand for the face masks subsided, the company let go of 470 workers in Smithfield.
Michelle Chapman is a business writer for The Associated Press.
