The Weekly Wrap-Up provides a list of upcoming spin-offs and summaries of recent publications. If you haven’t engaged with the research over the past seven days, the Weekly Wrap-Up will quickly update you on our newest and highest conviction ideas.
UPCOMING U.S. SPIN-OFFS AND EXPECTED COMPLETION DATES:
2025
2026
RECENT PUBLICATIONS:
UPDATE: Honeywell International Inc. (HON) – October 16, 2025
HON’s Board Approves Solstice Spin-Off; Completion Date Set for October 30th; Maintain $245 FVE
This morning, before the market open, Honeywell International Inc. (HON) announced that its Board had approved the tax-free spin-off of its Advanced Materials business, which will be named Solstice Advanced Materials Inc. and trade on the Nasdaq Stock Exchange (NASDAQ) under the ticker “SOLS”. Shareholders of record will receive one share of SOLS for every four shares owned of Honeywell, which will continue to trade under the same listing and maintain the current corporate moniker. So-called “when-issued” trading is expected to begin trading on October 20th under the ticker “SOLSV” with “regular-way” trading commencing on (“or about”) October 30, 2025.
For its part, Solstice generated ~$3.8 billion of sales in 2024, split roughly 70%/30% between Refrigerants & Applied Solutions and Electronics & Specialty Materials, with adj. standalone EBITDA of nearly $1.0 billion. For 2025E, the standalone company is anecdotally projected to post annual sales of $3.75-$3.85 billion, with a projected EBITDA margin of ~25%, implying, by our calculation, adj. 2025E EBITDA of ~$935-$965 million. RemainCo, which includes the Aerospace segment as well as the broader Automation business will be comprised of two segments, each generating roughly ~$17 billion of sales and ~$4.5-$5.0 billion of segment-level adjusted EBITDA.
On a sum-of-the-parts basis, we fairly value pre-spin HON at ~$245 per share, consisting of $16 per share for Solstice and $229 per share for NewHoneywell. On a post-spin basis, reflecting the four-for-one distribution ratio, shares of Solstice are fairly valued at ~$63 per share, with NewHoneywell at ~$229 per share. Given the implied upside, we, again, recommend a pre-spin purchase of HON shares but would note that we think it is possible that post-spin shares of Solstice, which may have longer-term opportunities to participate in potential industry consolidation, may struggle to gain initial traction while it accumulates its own individual shareholder constituency; to that end, it also seems reasonable to assert that the bulk of current HON shareowners are primarily focused on the larger Aerospace and Automation businesses.
For context, this transaction comes within the backdrop of both company specific activist-investor pressure as well as a seemingly broader apathy on the part of investors toward so-called “multi-industry” conglomerates, such as HON. To that end, it is notable to point out that Dupont is on the verge of completing a step in its own journey toward a simpler, more focused portfolio with the impending spin-off of Qnity Electronics. Additionally, a long list of other companies have generated substantial overall shareholder value by reducing complexity in recent years, including, among others, Danaher, GE, United Technologies, Tyco, Ingersoll Rand, Johnson Controls, Pentair and ITT. In that context, while we would assert that the impending spin-off of Solstice will be an incremental positive when considering the obvious size disparity between SpinCo & RemainCo, the transaction is likely to represent just the opening salvo in a wider value-unlocking process that will stretch into late-2026/early-2027. Other impending portfolio actions include the potential monetization of PSS and WWS, which will simplify the future standalone Automation company, as well as the planned spin-off of the Aerospace business and the latent potential for an initial public offering (IPO) of Quantinuum, representing other key milestones in a potentially significant multi-year re-rating process for legacy HON.
UPDATE: DuPont de Nemours, Inc. (DD) – October 16, 2025
DuPonts’s Board (DD) Approves the Qnity Spin-Off; Completion set for November 1st (with an October 22nd Record Date); Maintain $96.50 FVE
Last night, after the market close, DuPont de Nemours, Inc. (DD) announced that its Board had approved the tax-free spin-off of its Electronics business, which will be named Qnity Electronics, Inc. and trade on the New York Stock Exchange (NYSE) under the ticker “Q”. As previously disclosed, the transaction is expected to be completed on November 1, 2025, with “regular-way” trading commencing on November 3, 2025. Shareholders of record, as of October 22, 2025, will receive one share of Qnity for every two shares of Dupont owned.
Our sum-of-the-parts, pre-spin valuation for DD remains ~$96.50 per share, consisting of ~$48 per share for Qnity and ~$48.50 per share for NewDupont. On a post-spin basis, reflecting the 1-for-2 distribution ratio, shares of Qnity are fairly valued at ~$96 per share with NewDupont at ~$48.50 per share. Given the implied upside to our fair value estimate, along with our expectation of a relatively orderly debut for both companies our pre-spin recommendation remains BUY. In terms of trading intricacies, from October 27th thru the 31st, there will be two markets for DD; the first, a “regular-way” market under the current ticker (DD), which will include the right to receive shares of Q as well as a so-called “ex-distribution” market trading under the ticker “DD WI” that will be exchanged without any claims to post-spin Q. As well, just from a technical perspective, if one sells their “regular-way” shares of DD on or before the last trading day prior to distribution they will forfeit the right to receive an interest in post-spin Qnity.
For reference, post-spin, NewDuPont, including the impending $1.8 billion sale of Aramids, is expected to generate ~$6.9 billion in 2025E sales, which are roughly evenly split between the Water & Healthcare and Diversified Industrial businesses, with adj. operating EBITDA of ~$1.6 billion while Qnity Electronics is expected to post 2025E sales of ~$4.6 billion, again, roughly split between Semiconductor Technologies and Interconnect Solutions, with adj. operating EBITDA of ~$1.4 billion. Beyond the standard rationale of improved management/strategic focus, enhanced operational flexibility, optimized capital structures & capital allocation policies, one could summarily characterize NewDupont as the slower-growing concern, at least from a top-line perspective, and lower-margin, albeit with less capital intensity. Also, it will have a higher level of committed capital returns, as well as a lower leverage profile. Additionally, NewDupont expects to maintain an investment grade credit rating (i.e., BBB+) and is a component of the S&P 500 Index. In comparison, Qnity is the relatively higher growth, higher margin business, albeit with a higher expected leverage profile, as well as a lower committed shareholder return profile and a non-investment grade (i.e., BB+) credit rating.
COMPREHENSIVE REPORT: Honeywell International Inc. (HON) – October 15, 2025
On October 8, 2024, Honeywell International Inc. (HON) announced plans for a tax-free spin-off of its Advanced Materials (AM) business into an independent, publicly traded entity, which will be named Solstice Advanced Materials and trade on the Nasdaq Stock Exchange under the ticker “SOLS”. The transaction, which does not require shareholder approval, is expected to be completed on October 30, 2025. Shareholders of record will receive one share of SOLS for every four shares owned of Honeywell, which will continue to trade under the same listing and maintain the current corporate moniker. Separately, in addition to the impending Solstice transaction, on February 6, 2025, Honeywell announced plans for the tax-free separation, of its remaining Automation and Aerospace businesses, which is targeted for completion in 2H 2026, subject customary conditions, including the filing & effectiveness of a Form 10 registration statement with the Securities & Exchange Commission (SEC), the receipt of various regulatory approvals and final consent of HON’s Board of Directors. For a degree of perspective on the decision to ultimately separate into three independent companies, rather than two, we would note that in November 2024, activist-investor Elliott Investment Management issued a public letter to HON’s Board indicating it had made “a more than $5 billion” investment in the company, suggesting, among other things, the further separation of HON’s Aerospace & Automation businesses. Subsequently, in May 2025, the two parties entered into a so-called cooperation agreement where HON’s 11-member Board was expanded by one to include Marc Steinberg, a partner at Elliott, as a new independent director.
For its part, Solstice generated ~$3.8 billion of sales in 2024, split roughly 70%/30% between Refrigerants & Applied Solutions and Electronics & Specialty Materials, with adj. standalone EBITDA of nearly $1.0 billion. For 2025E, the standalone company is anecdotally projected to post annual sales of $3.75-$3.85 billion with a projected EBITDA margin of ~25%, implying, by our calculation, adj. 2025E EBITDA of ~$935-$965 million. RemainCo, which includes the Aerospace segment as well the broader Automation business will be comprised of two segments each generating roughly ~$17 billion of sales and ~$4.5-$5.0 billion of segment-level adjusted EBITDA.
In terms of post-spin leadership, Solstice will be led by current head of the Advanced Materials (AM) business David Sewell who will assume the president & chief executive officer (CEO) roles as well as join SOLS’s 10-member board, which will be chaired by Dr. Rajeev Gautum. Tina Pierce, the AM segment’s current finance chief has been named SOLS’s chief financial officer (CFO). Current, HON CEO, Vimal Kupur will maintain his position post-spin.
For context, this transaction comes within the backdrop of both company specific activist-investor pressure as well as a seemingly broader apathy on the part of investors toward so-called “multi-industry” conglomerates, such as HON. To that end, it is notable to point out that Dupont is on the verge of completing a step in its own journey toward a simpler, more focused portfolio with the impending spin-off of Qnity Electronics while a long-list of other companies have generated substantial overall shareholder value by reducing complexity in recent years, including, among others, Danaher, GE, United Technologies, Tyco, Ingersoll Rand, Johnson Controls, Pentair and ITT. In that context, while we would assert that the impending spin-off of Solstice will be an incremental positive when considering the obvious size disparity between SpinCo & RemainCo the transaction is likely to represent just the opening salvo in a wider value unlocking process that will stretch into late-2026/early-2027 with other impending portfolio actions, including the potential monetization of PSS and WWS, which will simplify the future standalone Automation company, as well as the planned spin-off of the Aerospace business and the latent potential for an initial public offering (IPO) of Quantinuum, representing other key milestones in a potentially significant multi-year re-rating process for legacy HON. In this context, we assign a BUY rating to pre-spin shares of HON. On a sum of the parts basis, we fairly value shares of pre-spin HON at ~$245 per share, consisting of $16 per share for Solstice and $229 per share for NewHoneywell. On a post-spin basis, reflecting the four-for-one distribution level, shares of Solstice are fairly valued at ~$63 per share with NewHoneywell at ~$229 per share. Given the implied upside, we, again, recommend a pre-spin purchase of HON shares but would note that we think it is possible that post-spin shares of Solstice, which may have longer-term opportunities to participate in potential industry consolidation, may struggle to gain initial traction while it accumulates its own individual shareholder constituency; to that end, it seems reasonable to assert that the bulk of current HON shareowners are likely primarily focused on the larger Aerospace and Automation businesses.
ALERT: Johnson & Johnson (JNJ) – October 14, 2025
JNJ Announced its Intent to Separate its Orthopedics Business Over the Next 18-24 Months
On October 14, 2025, Johnson & Johnson (JNJ), a global pharmaceutical company, announced its intention to separate its orthopedics business over the next 18-24 months, subject to customary conditions, including final Board approval. While management’s presumed structure for the transaction is a tax-free spin-off, the company will simultaneously explore a range of avenues to “optimize” shareholder value, including a sale. As a separate entity, the orthopedics business, which generated ~$9.2 billion of revenue in 2024 and focuses on hip & knee replacements as well as spinal equipment, will operate as DePuy Synthes and be led by Mr. Namal Nawana.
Beyond the standard rationale of improved management/strategic focus and enhanced operational flexibility we note that the announcement comes within the context of JNJ’s multi-year effort to focus on higher-growth and higher-margin products/markets. To that end, management anecdotally indicates that the DePuy Synthes separation “will further strengthen our overall MedTech business, and increase Johnson & Johnson’s top-line growth and margins”. Further, the company elaborated for a degree of directional context, that if one looks at “normalized year-to-date 2025 results, MedTech’s top-line revenue growth and operating margin would both improve by at least 75 basis points” without the impact of orthopedics. (For a degree of additional historical context, recall JNJ competed the tax-free spin-off of its consumer-health business, Kenvue Inc. (KVUE) in August 2023.)
Applying a blended multiple of ~17.0x to 2026E adj. EPS that is roughly in-line with current consensus forecasts yields a preliminary, base case, sum-of-the-parts valuation of ~$194 per share.
COMPREHENSIVE REPORT: DuPont de Nemours, Inc. (DD) – October 10, 2025
On May 22, 2024, DuPont de Nemours, Inc. (DD) announced its intention to separate into three independent publicly traded companies via the tax-free spin-offs of its Electronics and Water businesses. The separations were initially expected to be completed within 18-24 months of the announcement, subject to customary conditions, which notably did not include shareholder approval. Subsequently, on January 15, 2025, Dupont indicated that it intended to accelerate the tax-free spin-off of its Electronics business but retain its Water business. All told, the tax-free spin-off of Dupont’s Electronics business, which will be named Qnity Electronics, Inc. and trade on the New York Stock Exchange (NYSE) under the ticker “Q” is expected to be completed on November 1, 2025 with regular-way trading commencing on November 3, 2025. Shareholders of record, as of October 22, 2025, will receive one share of Qnity for every two shares of Dupont owned. As of November 3, 2025, NewDupont will continue to trade under the same listing (DD) and maintain the current corporate moniker.
Post-spin, NewDuPont, including the impending sale of Aramids, is expected to generate ~$6.9 billion in 2025E sales, which are roughly evenly split between the Water & Healthcare and Diversified Industrial businesses, with adj. operating EBITDA of ~$1.6 billion while Qnity Electronics is expected to post 2025E sales of ~$4.6 billion, again, roughly split between Semiconductor Technologies and Interconnect Solutions, with adj. operating EBITDA of ~$1.4 billion. Beyond the standard rationale of improved management/strategic focus, enhanced operational flexibility, optimized capital structures & capital allocation policies, one could summarily characterize NewDupont as the slower-growing concern, at least from a top-line perspective and lower-margin, albeit with less capital intensity. Also, it will have a higher level of committed capital returns, as well as a lower leverage profile. Also, NewDupont expects to maintain an investment grade credit rating (i.e., BBB+) and is a component of the S&P 500 Index.
In terms of leadership, post-spin Dupont will continue to be led by DD’s current chief executive officer Lori Koch, as well as DD’s current CFO, Antonella Franzen. Jeroen Bloemhard, currently the general manager of the Water business will lead the Healthcare & Water Protection business, and Beth Ferreira, who recently joined the company in July 2025 following stints at Illinois Tool Works and IMI Plc, will be President of the Diversified Industrials business. For post spin Qnity, Jon Kemp, who served as the head of DD’s previous Electronics & Industrial segment since August 2019, will assume the helm of standalone SpinCo, as well as join the Board of Directors, with Mr. Matthew Harbaugh joining as the chief financial officer (CFO). Mr. Mark Blinn, the former CEO & CFO of Flowserve Corp., will assume the Chairman of the Board role while current DD Board members Terrence Curtin, Kristina Johnson and Steven Sterin will also be joining the 9-member Qnity Board, which we note will have a staggered three-class election structure.
On a sum-of-the-parts basis, we fairly value pre-spin DD at ~$96.50 per share, consisting of ~$48 per share for Qnity and ~$48.50 per share for NewDupont. On a post-spin basis, reflecting a 1-for-2 distribution ratio, shares of Qnity are fairly valued at ~$96 per share with NewDupont at ~$48.50 per share. Given the implied upside to our fair value estimates, along with our expectation of a relatively orderly debut for both companies our pre-spin recommendation is BUY.
Monthly publication providing ongoing analysis on companies where we see potential for a value-unlocking event
Companies discussed this month: Caesars Entertainment, Inc. (CZR), Corteva, Inc. (CTVA)*, Coty Inc. (COTY)*, Genuine Parts Company (GPC)*, Goodyear Tire & Rubber, Inc. (GT), Luxfer Holdings (LXFR), Matthews International Corp. (MATW), Netgear Inc. (NTGR), PepsiCo, Inc. (PEP), Sealed Air Corp. (SEE), Stanley Black & Decker (SWK), The Scotts Miracle-Gro Co. (SMG), TriMas Corporation (TRS), XPO Inc. (XPO)
*added this month
Published monthly, The Spin-Off Calendar provides one-page summaries of every spin-off under coverage from the announcement date, followed by the filing of the Form 10 and continuing 60 days post completion.
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