Honeywell to Spin Off Resins and Chemicals Business

Honeywell International Inc. said Thursday that it would spin off its $1.3 billion resins and chemicals business into a stand-alone, publicly traded company.

The deal is expected to be completed by early 2017 and is subject to certain conditions and the assurance that the spinoff will be tax-free to Honeywell shareowners. The spun-off company will be called AdvanSix and its Chief Executive will be Erin Kane, who is currently the general manager of the resins and chemicals unit.

Honeywell said there is currently no impact to its financial guidance.

The resins and chemicals business makes Nylon 6, a polymer resin used to produce engineered plastics, fibers, filaments and films. Those products are used to produce automotive and electronic components, carpets, sports apparel, fishing nets, and packaging. The segment also produces ammonium-sulfate fertilizers and chemical intermediates, such as phenol and acetone. It is also the largest single-site producer of caprolactam, which is used to make Nylon 6.

The move to spin off some assets comes two months after the New Jersey-based company withdrew a $90 billion bid to beef up by buying fellow industrial giant United Technologies Corp. It backed down from the massive tie up after facing opposition from the target, antitrust regulators and major customers.

Last month. Honeywell said its board authorized the repurchase of as much as $5 billion of the industrial conglomerate's shares as part of its strategy to deploy cash.

Write to Austen Hufford at [e-mail]

(END) Dow Jones Newswires

May 12, 2016 09:15 ET (13:15 GMT)

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