MORRIS PLAINS, N.J. - Honeywell is spinning off its $1.3 billion Resins and Chemicals business into a new publicly-traded company named AdvanSix Inc. Honeywell's products are used in the manufacture of paints, coatings, engineered plastics, packaging, and other items. The deal is expected to be completed by early 2017.
Erin Kane will serve as AdvanSix's president and CEO. Kane has served as vice president and general manager of the Resins and Chemicals business since October 2014.
“Our $1.3 billion Resins and Chemicals business enjoys a leading position in the industries it serves and a global cost advantage. 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,” said Honeywell Chairman and CEO Dave Cote.
When finalized, AdvanSix will immediately rise to one of the leading producers of nylon 6, a polymer resin used to produce engineered plastics, fibers, filaments, and films for electronic components, carpets, and industrial packaging. AdvanSix will also produce chemical intermediates, including: phenol to make resins for wood products; acetone, used as a solvent to make paints, inks, coatings and other materials; Naxol cyclohexanol used in making lacquers, varnishes and shellac; Nadone cyclohexanone, used in paints and printing inks; and methyl ethyl ketoxime (MEKO), an anti-skinning agent for air drying paints and coatings.
“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. The transaction will create added value for our shareowners, who will receive AdvanSix shares tax-free in addition to the Honeywell shares they already own,” Cote added.
A Fortune 100 diversified technology and manufacturing firm with sales worldwide, Honeywell (NYSE: HON) provides aerospace products and services; control technologies for buildings, homes and industry; turbochargers; and performance materials.
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