Honeywell has announced major changes to its corporate structure with a stronger focus on HVAC.
The company is planning to spin-off parts of its business in order to create two new publicly-traded companies by the end of 2018.
After a full portfolio review, Honeywell decided to spin off its home and ADI global distribution unit, which pulls in $4.5 billion in annual revenues, and its transportation systems unit, which has about $3 billion in revenue.
The new, separate home business will focus on heating, ventilation, and air-conditioning, and the distribution of security and fire protection products.
Honeywell president and CEO, Daruis Adamczyk said that the new companies will be “better positioned to maximize share-owner value through focused strategic decision making and capital allocation tailored for their end markets.”
Honeywell also announced that it would be keeping its aerospace technology business.
Effective immediately, Gary Michel will serve as president and CEO of Honeywell’s Home and Building Technologies (HBT) strategic business group.
Michel will report to Adamczyk and serve as a company officer. Michel succeeds Terrence Hahn, who will move to a leadership role reporting to Adamczyk and will help prepare the Homes and ADI businesses for the spin.
Michel joins Honeywell from Ingersoll-Rand Company, where he has held a series of large leadership roles over the past 32 years. Most recently, he served as senior vice president and president, Residential HVAC and Supply.
Adamczyk said Michel has proven himself to be an innovative and energetic leader with a deep understanding of his customers and end markets.
In Australia, Honeywell has been delivering solutions to business, industry and consumers since 1962. Today, Honeywell employs around 2,000 people in more than 30 offices across the country and has a presence in every state and territory.