Honeywell to Spin Off Aerospace Unit June 29

Honeywell will complete the separation of its aerospace division on June 29, creating a standalone company while the remaining automation business will operate as Honeywell Technologies. CEO Vimal Kapur said the company had already begun preparatory work on the split before activist investor Elliott Investment Management sent a public letter in October 2024 calling for the breakup.

Planning the Separation Kapur said Honeywell first practiced the process by spinning off its smaller advanced materials business. He told the board during his 2022 interviews for the CEO role that the company was too complex. After meeting with Elliott representatives, Kapur said both sides agreed on the direction and the remaining question was how to execute the split.

Kapur assigned oversight of the separation to a dedicated team led by former general counsel Anne Madden. The team handles most detailed decisions while Kapur retains authority over major choices such as selecting the new aerospace chief executive. He described the separation as a series of tasks that must be completed without error, including dividing payroll systems so employees continue to receive pay on schedule.

Kapur said Honeywell spent $14 billion on acquisitions during his time as CEO and that management must continue refreshing the portfolio even while executing the breakup. He noted that share buybacks are not the primary way leadership adds value for shareholders.