MORRIS TOWNSHIP, N.J. Honeywell
has completed the sale of its Friction Materials (FM) business to Federal-Mogul in a cash transaction valued at approximately $155 million. The transaction does not include the Bendix name or line of products or business in the United States. In addition, joint ventures that operate in Australia, Thailand and Malaysia will be retained as will Honeywell's ownership of the non-operating sites in Conde, France and Guangzhou, China.
The company announced that it also will realign its Transportation Systems business segment with its Aerospace business segment to better take advantage of the engineering and technology similarities and the shared business models between these two business segments. Under the realigned segment reporting structure, the company will have three business segments: Aerospace, Automation and Control Solutions and Performance Materials and Technologies.
"The sale of the Friction Materials business is a significant step in our effort to fully align the Honeywell portfolio around 'Great Positions in Good Industries,'" said Honeywell Chairman and CEO Dave Cote. "Honeywell is a global technology leader and our Turbo business is one of our innovation crown jewels. Born out of our Aerospace business, the automotive turbocharger is a miniature jet engine. To leverage shared strengths and synergies, we will merge Transportation Systems, which includes our Turbo Technologies business, with Aerospace. We expect the transition to be seamless with both businesses benefitting from expanded sharing of the technical expertise that enables them to offer differentiated products to customers in their respective markets."
This realignment has no impact on the company's historical consolidated financial position, results of operations or cash flows. Effective with the reporting of third quarter 2014 results, the company will report its financial performance based on the inclusion of Transportation Systems in Aerospace. To provide historical information on a basis consistent with its new reporting structure, the company will make available during the third quarter of 2014 certain historical segment results recast to conform to the new reporting structure. The re-casted financial information will not represent a restatement of previously issued financial statements.