Honeywell Announces Spinoff of Defense and Marines Systems
MINNEAPOLIS (AP) _ Honeywell Inc. announced details Tuesday of plans to spin off its defense and marine systems business into a new company to be called Alliant Techsystems Inc.
After the spinoff is completed, Alliant Techsystems would be the 17th- largest direct supplier to the Defense Department, and would rank about 300th on the Fortune 500 list, Honeywell said.
The company said Alliant Techsystems would be the eighth-largest publicly held industrial corporation in Minnesota.
Honeywell said it expects to obtain final board approval of the spinoff in the fall.
According to preliminary plans, people who own Honeywell stock on the record date for the distribution would receive one share of Alliant Techsystems’ common stock for every four shares of Honeywell.
Based on 38.2 million shares of Honeywell stock currently outstanding, about 9.5 million shares of Alliant Techsystems’ stock would be distributed to Honeywell shareholders.
Application will be made to list Alliant Techsystems’ common stock on the New York Stock Exchange. It would trade separately from Honeywell Inc. common stock.
Alliant Techsystems’ management team will be led by Toby G. Warson, president and chief executive officer, who was formerly chief executive officer of Honeywell’s United Kingdom subsidiary.
Alliant Techsystems’ defense and marine systems and test instruments businesses provide products and services to the U.S. government, allied governments and other customers.
Products include tactical munitions, torpedos, electronics systems, sonar and signal processing subsystems, undersea vehicles, information storage and testing and certification services and products for the information security and intelligence market.
James J. Renier, Honeywell chairman and chief executive officer, said the spinoff will give shareholders an opportunity to hold ownership in a new defense company, while Honeywell focuses exclusively on its core controls businesses.
Honeywell is a global controls company that provides products, systems and services for homes and buildings, industry, and aviation and space. The company had 1989 sales of $6.1 billion.