Honeywell Begins Spin-Off and Public Listing

According to reports, Solstice, as a differentiated advanced materials company, will occupy a market-leading position in the fields of refrigerants, semiconductor materials, protective fibers, and medical packaging solutions. In 2024, the company is expected to achieve net sales of $3.8 billion, net income of $600 million, and an adjusted EBITDA of $1.1 billion. The company owns well-known brands such as Solstice®, Genetron®, Aclar®, Spectra®, Fluka®, and Hydranal®, and employs over 3,900 people across 21 production sites and 4 research and development centers.

Solstice will be divided into two operating segments: Refrigerants and Application Solutions, and Electronics and Advanced Materials.

Refrigerants and Application Solutions (RAS): A leading portfolio of low Global Warming Potential (LGWP) refrigerants, blowing agents, solvents, and aerosol materials, distributed and sold under the Solstice®, Genetron®, and Aclar® brands. The segment achieved net sales of $2.7 billion in 2024.

Electronics and Specialty Materials (ESM): A leading portfolio of electronic materials, industrial-grade fibers, laboratory life science materials, and specialty chemicals, distributed and sold under the Spectra®, Fluka®, and Hydranal® brands. The department achieved net sales of USD 1 billion in 2024.

It is understood that Honeywell's plan to spin off its Advanced Materials business was proposed on October 8, 2024. Shortly thereafter, on February 6, 2025, the company further announced the spin-off of its Aerospace business, which is expected to be completed in the second half of 2026. Honeywell will establish independent publicly listed companies in three major areas: automation, aerospace, and high-performance materials.

Since December 2023, Honeywell has announced a series of strategic initiatives to streamline its product portfolio. These include the acquisition of the access solutions business from Carrier Global, Civitanavi Systems, CAES Systems, and the liquefied natural gas business from Air Products. In May of this year, Honeywell completed the sale of its personal protective equipment business and announced the acquisition of the catalyst technologies business from Johnson Matthey for £1.8 billion. In June, Honeywell completed the acquisition of Sundyne, and in July, it completed the strategic tuck-in acquisition of Li-ion Tamer.

In addition, Honeywell has announced the list of future board members for Solstice, which will consist of 10 members. Dr. Rajeev Gautam, former President and CEO of Honeywell Performance Materials and Technologies (PMT), will serve as independent chairman, and David Sewell will serve as President and CEO of Solstice. The board will also include senior executives from companies such as DuPont, 3M, Alcoa, and Marathon Petroleum Corporation.