Honeywell will spin off its Homes product portfolio and ADI global distribution business, as well as its Transportation Systems business, into two stand-alone, publicly-traded companies. The separation transactions are expected to be completed by the end of 2018.

The remaining Honeywell portfolio will consist of businesses in six industrial end markets, each aligned to global mega trends including energy efficiency, infrastructure investment, urbanization and safety. The company expects the new Homes and Global Distribution business to be a leader in the home heating, ventilation and air conditioning (HVAC) controls and security markets, and a leading global distributor of security and fire protection products. The business is expected to have annualized revenue of approximately $4.5 billion, and approximately 13,000 employees.

The new Transportation Systems business will be a global leader in turbocharger technologies with best-in-class engineering capabilities for a broad range of engine types across global automobile, truck, and other vehicle markets. The business is expected to have annualized revenue of approximately $3 billion, and approximately 6,500 employees.

• Honeywell International Inc., Morris Plains, NJ, USA