Honeywell completes liability management reorganization with no impact to shareholders

Published 24/06/2025, 21:56
© Reuters.

Honeywell International Inc. (NASDAQ:HON), a $144 billion industrial conglomerate with a "GOOD" financial health rating according to InvestingPro, announced Monday that it has completed its previously disclosed liability management reorganization. As one of the most prominent players in the Industrial Conglomerates industry, Honeywell has maintained an impressive track record of dividend payments for 41 consecutive years. According to a statement filed with the Securities and Exchange Commission, the process involved allocating certain asbestos-related and environmental assets and liabilities to separate, wholly owned entities.

The reorganization was executed through a series of corporate transactions, including mergers and a division under Delaware law. Honeywell’s shareholders approved the plan at the company’s annual meeting on May 20, 2025.

As part of the process, Honeywell first merged with a subsidiary, resulting in shareholders receiving shares in a new holding company. The company then underwent a division, creating separate entities to hold specific asbestos and environmental-related assets and liabilities. Following this, the structure was reverted, and shareholders again became shareholders of Honeywell International Inc., which remains the publicly listed parent company.

The company stated that there is no change to the number of shares held by each shareholder, and the rights associated with those shares, including voting and dividend rights, remain the same. All outstanding equity awards, such as options and restricted stock units, continue under the same terms as before the reorganization. The composition of the board of directors and executive officers is unchanged.

Honeywell’s common stock continues to trade on the Nasdaq under the ticker “HON.” The company’s amended and restated certificate of incorporation and bylaws are substantially identical to the documents in effect before the reorganization, except for certain dates and ministerial language.

The company emphasized in its SEC filing that the reorganization does not affect shareholder ownership or rights. The information in this article is based on a statement filed with the Securities and Exchange Commission. With a moderate debt level and strong dividend growth of 4.63% over the last twelve months, Honeywell continues to demonstrate financial stability. Discover more exclusive financial metrics and 8 additional key insights about Honeywell through InvestingPro’s advanced analytics platform.

In other recent news, Honeywell International has seen significant developments that may interest investors. Jefferies analysts raised their price target for Honeywell stock to $240, citing the company’s planned Aerospace Technologies spin-off expected in 2026. Despite the upcoming corporate action, Jefferies maintains a Hold rating, suggesting that Honeywell’s revenue growth lags behind peers. Additionally, Jefferies previously adjusted their price target to $235, highlighting Honeywell’s success with its inceptor technology used by Vertical Aerospace. In corporate governance, Marc Steinberg from Elliott Investment Management is set to join Honeywell’s board as an independent director and audit committee member. This move aligns with Honeywell’s strategy as it prepares to split into three independent companies. Oppenheimer has maintained a Perform rating on Honeywell, noting the company’s focus on optimizing its business model across various sectors, including Aerospace and Industrial Automation. Honeywell’s strategic initiatives aim to enhance its aftermarket growth and diversify its sales and margin mix.

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