8-KOther Events

HONEYWELL INTERNATIONAL INC 8-K Report, Corporate Update (Oct 1, 2018)

Filed October 1, 2018For Securities:HONHONIV

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.

Frequently Asked Questions

This 8-K filing was made to publicly announce the completion of the legal and structural separation of Honeywell's Transportation Systems business, which is now known as Garrett Motion Inc., through a spin-off transaction.

Honeywell shareholders who owned stock as of the record date of September 18, 2018, automatically received one share of Garrett common stock for every ten shares of Honeywell common stock they held. Fractional shares were settled in cash.

No, the spin-off was completed without the payment of any consideration or the exchange of shares by Honeywell's shareowners. The distribution was a pro-rata dividend of Garrett stock.

The spin-off allows Honeywell to divest its Transportation Systems business, enabling the company to focus more strategically on its remaining diversified industrial businesses. This is expected to simplify Honeywell's structure and potentially enhance its strategic focus and shareholder value in its core areas.