In October 2017, Honeywell International announced its intention to spin off its Homes product portfolio and ADI global distribution business, as well as its Transportation Systems business, Turbo, into two standalone, publicly-traded companies. Here, members of the Honeywell treasury team and representatives from their banking partner, BNP Paribas, share their experiences of tackling these two spin-offs against a ticking clock. They also explain how proactivity, flexibility and clear communication ultimately made this non-standard implementation a success.
As soon as the announcement to spin off Turbo and Homes was made, Honeywell’s treasury team started to take action. The group’s CEO wanted the spin-offs completed by the end of 2018 – and the workload was not to be underestimated, especially since both Homes and Turbo were fully integrated into the existing treasury set-up, under the ‘One Honeywell’ treasury model.
As such, both businesses were participating in the Honeywell liquidity structure run by group treasury, including domestic and cross-border cash pools. They were also using the same TMS as all the other Honeywell legal entities worldwide and utilising the in-house bank.
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BNP ParibasCash Flow ForecastingCash ManagementCash Pooling