The company is assessing alternatives for its productivity solutions and services, and warehouse and workflow solutions businesses, along with its ongoing portfolio workstreams, it said Tuesday. The group said there's no assurance that the review will result in a potential deal or other outcome.
The productivity solutions and services business, which recorded more than $1 billion in revenue in 2024, provides mobile computers and barcode scanners. The warehouse and workflow solutions business, which generated nearly $1 billion of revenue last year, offers supply chain and warehouse automation projects, services and products.
"We are encouraged by the recent performance of (productivity solutions and services) and (warehouse and workflow solutions) and intend to seek opportunities to build on their unique strengths as we determine the best path forward that maximizes value for all our stakeholders," Chief Executive Vimal Kapur said in a statement.
Honeywell doesn't expect the strategic evaluation of the businesses to impact the timelines of its previously announced separation plans for some of its other operations. In February, the group announced that it would split into three publicly-listed entities, Honeywell Automation, Honeywell Aerospace and Advanced Materials.
"Today's announcement marks an important milestone in positioning Honeywell for success as a pure-play automation business," according to Kapur. "With a simpler and more cohesive portfolio that serves the end markets of buildings, process and industrials, Honeywell will focus on our core areas of automation expertise."
The separation of the aerospace business is anticipated in the second half of 2026, while the spin-off of the advanced materials unit is expected by the end of 2025 or early next year, the company said Tuesday.
Since June 2023, Honeywell has completed about $14 billion of accretive acquisitions to generate organic growth and simplify its portfolio, according to the statement.
Meanwhile, the group appointed Jim Masso as CEO of its process automation business, effective July 14. Masso most recently served as CEO of Allied Power Group.
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