Honeywell Will Spin Off Resins And Chemicals Business Into A New Standalone And Publicly Traded Company

Honeywell International Inc. (NYSE: HON) announced on Thursday it plans on separating its Resins and Chemicals business to shareholders.

Honeywell noted its two segments will be spun-off into a new standalone and publicly-traded company named AdvanSix Inc. The company expects the transaction to occur by early 2017 and is expected to be tax-free to shareholders.

Honeywell added that the proposed spin-off has no change to its financial guidance at this time.

AdvanSix will be a leading manufacturer of Nylon 6, a polymer resin used to produce engineered plastics, fibers, filaments and films that are used in end products such as automotive and electronic components.

Erin Kane will serve as President and CEO of the new business and currently serves as Vice President and General Manager of the Resins and Chemicals business.

"Our $1.3 billion Resins and Chemicals business enjoys a leading position in the industries it serves and a global cost advantage. It is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers," said Honeywell Chairman and CEO, Dave Cote. "Following the spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business. The transaction will create added value for our shareowners, who will receive AdvanSix shares tax-free in addition to the Honeywell shares they already own."

Shares of Honeywell were trading slightly higher by 0.14 percent at $114.27 Thursday morning.