Summary
Honeywell International Inc. (HON) announced the completion of the legal and structural separation of its Transportation Systems business, now named Garrett Motion Inc. (Garrett), on October 1, 2018. This event, referred to as a Spin-Off, involved Honeywell shareholders of record as of September 18, 2018, receiving one share of Garrett common stock for every ten shares of Honeywell stock they held, along with cash for any fractional shares. Approximately 74.1 million shares of Garrett were distributed, with no additional consideration or exchange required from Honeywell shareholders. This separation represents a significant strategic move for Honeywell, allowing it to focus on its core businesses and potentially unlock greater value for shareholders by divesting a distinct operational segment. Investors should note that this transaction impacts the composition of Honeywell's overall business and its future growth profile. The spin-off of Garrett Motion Inc. allows Honeywell to streamline its operations and concentrate on its other diversified industrial segments.
Key Highlights
- 1Completion of the spin-off of Honeywell's Transportation Systems business, now operating as Garrett Motion Inc.
- 2Shareholders of record on September 18, 2018, received one share of Garrett common stock for every ten shares of Honeywell stock held.
- 3Cash payments were provided for any fractional shares of Garrett common stock.
- 4Approximately 74.1 million shares of Garrett common stock were distributed.
- 5The spin-off was completed without any additional consideration or share exchange from Honeywell shareholders.
- 6This action signals a strategic realignment for Honeywell, focusing on its core business segments.