Honeywell to spin off $1.3 billion resins and chemicals business

Honeywell Inc. said Thursday it is planning to spin off its $1.3 billion resins and chemicals business into a new standalone company to be named AdvanSix Inc. The new entity will be publicly traded with the deal expected to be completed by early 2017, the defense company said in a statement. The spinoff is expected to be tax-free to Honeywell shareholders. There is no impact to financial guidance at this time, said the statement. The business "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," Chief Executive Dave Cote said in the statement. Shares were not yet active in premarket trade, but are up 10% in the year so far, while the S&P 500 has gained 1%.

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