Honeywell spinning off 1.3B resins and chemicals unit

Honeywell announced Thursday it is spinning off its resins and chemicals business into a standalone, publicly traded company.The new company, which will be known as AdvanSix Inc., will be led by CEO and President Erin Kane, the Morris Plains-based conglomerate said in a news release. The $1.3 billion business manufactures the Nylon 6 polymer resin used in engineered plastics, fibers and other products.

“Our $1.3 billion resins and chemicals business enjoys a leading position in the industries it serves and a global cost advantage,” Honeywell Chairman and CEO Dave Cote said in a prepared statement. “It is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers.

“Following the spinoff, 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.”

Kane, the future CEO, is currently the vice president and general manager of the unit. She has served in that role since October 2014, having joined Honeywell in 2002.

“Erin is uniquely qualified to lead the new, independent company,” Cote said. “She has extensive experience in managing the global resins and chemicals business, having served in a number of business roles with increasing responsibility over the last eight years. As head of the resins and chemicals business over the last two years, she helped the business expand its product portfolio while maintaining the operational and cost advantages that it enjoys.”

Honeywell said completion of the spinoff is expected by early 2017, subject to customary conditions, including assurance that the transaction would be tax-free to Honeywell shareholders.

“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,” Cote said.