BREAKINGVIEWS-Honeywell's deal engine suffers mechanical failure
Solstice Advanced Materials, Inc. SOLS | 0.00 | |
Honeywell Technologies Inc. HON | 0.00 |
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.
By Robert Cyran
NEW YORK, July 6 (Reuters Breakingviews) - In less than two years, the US conglomerate has unveiled a spinoff, endured an Elliott siege and split itself. Now one of the companies is paying $15 bln to buy a chemicals peer. For all the churning cogs, there's little value to show. Not all carve-up contraptions run smoothly.
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CONTEXT NEWS
Specialty material maker Solstice Advanced Materials, which was spun out of industrial conglomerate Honeywell in October, said on July 6 it had agreed to buy peer Element Solutions in a deal valued at $14.5 billion, including net debt.
Under the terms of the transaction, Solstice will pay $50.10 per share in cash and stock, a premium of about 15% using closing prices on July 2, the last day of trading before the acquisition was announced.
Honeywell completed its breakup plan on June 29, further splitting into Honeywell Aerospace and Honeywell Technologies.
In late 2024, activist hedge fund Elliott Investment Management said it had accumulated a $5 billion stake in Honeywell and called for it to hive off its aerospace operations. The firm argued there was scope for a 51% to 75% valuation uplift over two years by doing so.
Goldman Sachs and PJT Partners are advising Solstice while BofA is advising Element Solutions.