8-KOther Events

HONEYWELL INTERNATIONAL INC 8-K Report, Corporate Update (Oct 29, 2018)

Filed October 29, 2018For Securities:HONHONIV

Summary

Honeywell International Inc. announced on October 29, 2018, the successful completion of the spin-off of its Homes and ADI Global Distribution business, which will now operate as a separate entity named Resideo Technologies, Inc. This strategic separation involved distributing shares of Resideo common stock to Honeywell shareholders of record as of October 16, 2018, on a pro-rata basis (one share of Resideo for every six shares of Honeywell held). Fractional shares were settled in cash. This spin-off is a significant strategic move for Honeywell, allowing it to focus on its core businesses, which are expected to drive higher growth and profitability. Investors should note that this transaction is designed to unlock shareholder value by creating two distinct, more focused companies. Honeywell's ongoing operations are expected to benefit from increased strategic clarity and resource allocation, while Resideo will operate as an independent entity with its own strategic direction and capital structure.

Key Highlights

  • 1Honeywell completed the legal and structural separation of its Homes and ADI Global Distribution business, forming a new, independent company called Resideo Technologies, Inc.
  • 2Honeywell shareholders of record on October 16, 2018, received one share of Resideo common stock for every six shares of Honeywell stock they owned.
  • 3Cash payments were made to shareholders for any fractional shares of Resideo common stock.
  • 4The spin-off was executed without requiring any payment or exchange of shares from Honeywell's shareholders.
  • 5Approximately 123 million shares of Resideo common stock were distributed.
  • 6This transaction signifies Honeywell's strategic decision to divest non-core assets and concentrate on its core industrial businesses.
  • 7The separation is expected to enhance strategic focus and financial flexibility for both Honeywell and the newly formed Resideo.

Frequently Asked Questions

Resideo Technologies, Inc. is the new, independent company formed from Honeywell's former Homes and ADI Global Distribution business. It will focus on products and solutions for the home, including smart home technology, security, and distribution services for professional security and low-voltage contractors.

If you were a Honeywell shareholder of record on October 16, 2018, you automatically received one share of Resideo common stock for every six shares of Honeywell common stock you held on that date. The shares were registered in book-entry form, and you should receive an account statement detailing your Resideo holdings.

Fractional shares of Resideo's common stock were settled in cash. You would have received a cash payment for any portion of a Resideo share that you were entitled to but did not receive a full share for.

Honeywell undertook this spin-off as a strategic decision to focus more intently on its core industrial businesses, which are expected to offer higher growth and profitability. The separation allows both Honeywell and Resideo to pursue their respective strategic priorities with greater agility and a tailored capital structure.