BWA BorgWarner Inc

Honeywell International Inc. (HON) has completed the divesture of Consumer Products Group (CPG) business with the closure of the sale of business to a privately held New Zealand based company, Rank Group Limited, for approximately $950 million in cash.

The CPG business produces four renowned consumer automotive brands, namely FRAM filters, Prestone antifreeze, Autolite spark plugs, and Holts car care products. The group operated under Honeywell's Transportation Systems segment and generated revenue of $1 billion in 2010.

Rank Group focused on investments, which would expand its business globally. Reynolds Group Holdings, a business of Rank Group, is one of the largest packaging companies in the world.

Honeywell’s short-cycle businesses as well as its commercial aerospace spares and residential and commercial retrofit businesses are performing impressively well and are expected to support future growth outlook of the company. The savings incurred from the implementation of Honeywell’s building techniques will be used for development without any need for outside funding. Further, the program will create job facilities for local contractors and housing authority residents.

Based in Morris Township, N.J., Honeywell International Inc. is a Fortune 100 company providing technical and manufacturing support to customers worldwide. It also provides aerospace products and services; control technologies for buildings, homes and industry; automotive products; turbochargers; and specialty materials. Major competitors of Honeywell are BorgWarner Inc. (BWA), United Technologies Corp. (UTX) and Johnson Controls Inc. (JCI).

We currently maintain our Outperform rating on Honeywell, with a Zacks #3 Rank (Hold recommendation) over the next one-to-three months.

 
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