Pressured by activist investor Third Point, Honeywell International Inc.’s new boss is ditching 132 years of corporate history in an effort to sharpen the company’s focus on its core businesses.
On the way out: automotive turbochargers and the household-systems operations, which include a thermostats business with roots that go back to the late 19th century. Chief Executive Officer Darius Adamczyk expects $3 billion from spinning off those units, and Honeywell will use the money to repay debt, buy back shares and prowl for acquisitions.
Adamczyk won the support of Daniel Loeb’s Third Point even after spurning its view that spinning off the aerospace division would unlock $20 billion in shareholder value. Honeywell will continue making cockpit control and jet engines,
From Industry Week