Press release
HONEYWELL ANNOUNCES TRANSACTION TO DIVEST LEGACY ASBESTOS LIABILITIES
Divests all Bendix asbestos liabilities and certain non-Bendix asbestos liabilitiesTransaction strengthens annual free cash flow generation and further
About this update from Honeywell International Inc.
[{"type":"text","content":"Divests all Bendix asbestos liabilities and certain non-Bendix asbestos liabilitiesTransaction strengthens annual free cash flow generation and further advances Honeywell's priorities of portfolio optimization and simplificationCHARLOTTE, N.C., Oct. 1, 2025 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced that it has divested all of its legacy Bendix asbestos liabilities, as well as certain non-Bendix asbestos liabilities, to Delticus, a leading institutionally capitalized corporate liability acquisition platform. \n\n \n \n \n \n \n \n\n \nUnder the terms of the agreement, Honeywell and Delticus contributed approximately $1.68 billion in cash, as well as certain insurance assets related to these legacy asbestos liabilities, to the newly established structure. Delticus assumed full responsibility for administering and resolving all current and future asbestos-related claims associated with the acquired liabilities. Honeywell utilized a portion of the approximately $1.6 billion in cash received from the recently announced Resideo Indemnification and Reimbursement Agreement termination transaction to fund the Delticus transaction.\nThe transaction allows Honeywell to permanently divest these legacy asbestos liabilities and transfer them to a high-quality partner in Delticus, providing finality and allowing the company to focus on redeploying capital toward core growth priorities. The timing also aligns with Honeywell's overall efforts to simplify its portfolio in advance of its planned separation into three independent, industry-leading companies, which is expected to be completed in the second half of 2026. \nHoneywell will have no further financial exposure to the transferred liabilities, which will be fully managed and administered by Delticus and for which Honeywell is fully indemnified.\nFinancial Impact\nThe estimated impact of the divestiture will be a one-time after-tax loss of approximately $115 million and the loss will be excluded from Adjusted Earnings Per Share. Additionally, because Delticus is taking over these liabilities, the transaction is expected to improve annual free cash flow by more than $100 million over the next several years and then decrease over time.\nAbout HoneywellHoneywell is an integrated operating company serving a broad range of industries and geographies around the world. Our business is...