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Honeywell Divests Legacy Asbestos Liabilities to Delticus

On October 1, 2025, Honeywell International Inc. (NASDAQ: HON) announced a significant strategic decision to divest all of its legacy Bendix asbestos liabilities along with certain non-Bendix asbestos liabilities to Delticus, a leading corporate liability acquisition agency. This move underscores Honeywell's ongoing efforts to refine its portfolio and enhance operational efficiency, thereby boosting its financial health.

Transaction Details

The agreement, which marks a pivotal step for Honeywell, involved a total cash contribution of approximately $1.68 billion, alongside specific insurance assets tied to these legacy liabilities. Delticus will assume complete responsibility for managing and resolving all present and future claims related to the acquired asbestos liabilities. This transition is expected to relieve Honeywell of any further financial exposure concerning these historical claims.

By leveraging approximately $1.6 billion in cash from the recently concluded termination of Resideo Indemnification and Reimbursement Agreement transactions, Honeywell facilitated this strategic divestiture efficiently. The finalization of this agreement is aligned with Honeywell's strategic roadmap for simplifying its operational portfolio as part of a larger restructuring plan that anticipates the separation of the company into three independent entities by the latter half of 2026.

Financial Implications

The financial impact of this transaction is projected to yield a one-time after-tax loss estimated at around $115 million. However, this loss will not be reflected in the company's Adjusted Earnings Per Share (EPS). Importantly, the deal is expected to improve Honeywell's annual free cash flow by more than $100 million over the ensuing years, although this figure may taper down over time.

As Honeywell moves forward, the initiative to transfer these liabilities to Delticus reflects an intentional strategy to deploy capital toward core business growth priorities while freeing up resources that were previously allocated to managing these legacy issues. Without a doubt, this divestiture paves the way for a more straightforward and agile Honeywell, able to navigate the complexities of the current economic landscape with renewed focus on innovation and development.

About Honeywell

Honeywell is a multi-industry, global leader that provides a wide array of products and services across various sectors. This includes aerospace, building technologies, industrial automation, and energy solutions. Honeywell's operations are firmly rooted in three significant megatrends – automation, aviation's future, and the transition to sustainable energy. With its IoT platform, Honeywell Forge, and the Honeywell Accelerator operating system, the company is committed to delivering innovative solutions that help address the toughest challenges faced by organizations globally.

Through strategic decisions like the divestiture of legacy asbestos liabilities, Honeywell is positioning itself not just as a pivotal player in its industries but also as a responsible corporate entity ready to take on the challenges of the future. More information about Honeywell and its initiatives can be found at Honeywell Newsroom.