 "Honeywell to spin off resins and chemicals business")
Honeywell yesterday announced its intention to spin off its resins and chemicals business into a standalone, publicly-traded company named AdvanSix Inc. Completion of the transaction is expected to occur by early 2017 and is subject to certain customary conditions, including, among others, assurance that the spin-off of AdvanSix will be taxfree to Honeywell shareowners, the effectiveness of appropriate filings with the US Securities and Exchange Commission, and final approval by Honeywell’s Board of Directors. There is no impact to financial guidance at this time.
“Our $1.3 billion resins and chemicals business enjoys a leading position in the industries it serves and a global cost advantage. Following the spin-off, Honeywell and AdvanSix will each have a more focused business and be better positioned to invest more in growth opportunities and execute strategic plans best suited to its respective business,” said Dave Cote, chairman and CEO, Honeywell.
Cote added, “Today’s announcement represents another step in the evolution of the Honeywell portfolio, as we continue to focus on driving breakthrough growth through advanced software capabilities and technology differentiation, with high-value product offerings that help us to win in the marketplace.”
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Upon completion of the spin-off, AdvanSix will be an independent, global, leading manufacturer of Nylon 6, a polymer resin used to produce engineered plastics, fibres, filaments, and films that, in turn, are used in end products such as automotive and electronic components, carpets, sports apparel, fishing nets, and food and industrial packaging. AdvanSix also produces Sulf-N ammonium sulfate fertilisers and chemical intermediates, including phenol, acetone, and Nadone cyclohexanone, and is the largest single-site producer of caprolactam.
Erin Kane, the current VP and GM of the resins and chemicals business, will serve as president and chief executive officer of AdvanSix upon completion of the transaction. She joined Honeywell in 2002 and has held numerous marketing, management, and business director roles in resins and chemicals and other businesses within Honeywell. Prior to joining Honeywell, Kane held Six Sigma and process engineering positions at Elementis Specialties and Kvaerner Process.
