Transaction will substantially complete Honeywell Specialty
Materials’ divestitures of non-core businesses
MORRIS TOWNSHIP, N.J., Sept. 1, 2005 -- Honeywell [NYSE:
HON] announced today that it has agreed to sell its U.S.
nylon carpet fibers business to Shaw Industries Group, Inc., a
subsidiary of Berkshire Hathaway, Inc.
Honeywell and Shaw also agreed to a long-term supply agreement for
Honeywell to supply Shaw with caprolactam and nylon resin, two
intermediate chemicals used in the production of nylon fibers for
carpeting and other applications.
Honeywell’s Nylon business is comprised of two operations:
fibers and intermediates. Honeywell will retain the intermediates
business, which manufactures caprolactam, Aegis® nylon resins
for various fiber and plastic applications, Sulf-N® ammonium
sulfate fertilizer and other chemicals.
Financial terms of the agreement were not disclosed. The
transaction, which is subject to Hart-Scott-Rodino regulatory
review, is expected to close in the fourth quarter of 2005.
“Once completed, this divestiture will represent another
major step in Specialty Materials’ transformation,”
said Nance Dicciani, president and CEO of Honeywell Specialty
Materials. “Divestiture of the non-core nylon carpet fiber
business will allow us to focus on the future and our core growth
portfolio, while building on our track record of financial
achievement over the past three years.”
Under terms of the transaction, Honeywell will sell its nylon fiber
manufacturing operations in Anderson, Clemson and Columbia, S.C.,
to Shaw Industries, which will also acquire the Zeftron® nylon
and Anso® nylon brand names. Shaw will also acquire
Honeywell’s 50 percent stake in Evergreen Nylon Recycling,
based in Augusta, Ga.
These four operations represent approximately 90 percent of
Honeywell’s nylon fiber capacity. Honeywell’s nylon
fiber operations in Shanghai, China, and Arnprior, Canada, and its
textile operations in Anderson, S.C., are not part of the
Honeywell’s Nylon business was expected to post revenues of
approximately $1.2 billion in 2005. After the divestiture and with
the supply agreement, the remaining business is expected to have
annual revenues of approximately $900 million.
Shaw Industries is based in Dalton, Ga., and produces and sells
carpet, rugs, ceramic, hardwood, and laminate flooring for
residential and commercial applications throughout the world.
Earlier this year, Honeywell sold its U.S. industrial wax
operations to IGI International, Inc. and its Asian and European
industrial wax operations to Paramelt BV. Last year, Honeywell
divested its Performance Fibers business. The divestitures are part
of Honeywell Specialty Materials’ plan to focus investment on
select core businesses built on growth platform technologies
including fluorines, advanced fibers and composites, and electronic
Honeywell International is a $26 billion diversified technology and
manufacturing leader, serving customers worldwide with aerospace
products and services; control technologies for buildings, homes
and industry; automotive products; turbochargers; and specialty
materials. Based in Morris Township, N.J., Honeywell’s shares
are traded on the New York, London, Chicago and Pacific Stock
Exchanges. It is one of the 30 stocks that make up the Dow Jones
Industrial Average and is also a component of the Standard &
Poor’s 500 Index. For additional information, please visit
Honeywell Specialty Materials, based in Morristown, N.J., is a
global leader in providing customers with high-performance
specialty materials, including fluorocarbons, specialty films and
additives, advanced fibers and composites, customized research
chemicals, and electronic materials and chemicals.
This release contains forward-looking statements as defined in
Section 21E of the Securities Exchange Act of 1934, including
statements about future business operations, financial performance
and market conditions. Such forward-looking statements involve
risks and uncertainties inherent in business forecasts as further
described in our filings under the Securities Exchange Act.
Honeywell Specialty Materials