Honeywell to Sell Nylon Carpet Fiber Unit to Shaw
Thu Sep 1, 2005 10:07 AM ET
BOSTON, Sept 1 (Reuters) - Honeywell International Inc. (HON.N: Quote, Profile, Research) on Thursday said it would sell its U.S. nylon carpet fibers business to Berkshire Hathaway Inc. (BRKa.N: Quote, Profile, Research) subsidiary Shaw Industries Group Inc. Terms were not disclosed.
The divestiture is another step in the aerospace and industrial conglomerate's efforts to overhaul its specialty materials business, which makes refrigerants and fibers.
Honeywell will sell three nylon fiber-making operations in South Carolina along with its 50 percent stake in another facility in Georgia. The four operations account for about 90 percent of Honeywell's nylon fiber capacity.
Honeywell's nylon fiber businesses in Shanghai and Canada are not part of the deal.
Morris Township, New Jersey-based Honeywell will keep that part of its nylon business that makes resins, fertilizer and other chemicals.
It will supply Shaw, a maker and seller of carpet and flooring, with the chemicals needed to make nylon carpet fibers as part of a new long-term supply agreement.
Honeywell's nylon business was expected to post revenue of $1.2 billion in 2005. After the divestitures and with the new supply agreement, Honeywell said the remaining business is expected to have annual sales of $900 million.
In an interview in June, Honeywell Specialty Materials CEO Nance Dicciani said the company was considering all options for a business that it deemed "non-core".