DBT Bureau
Pune, 4 Oct 2025
Honeywell said that it has divested all of its legacy Bendix asbestos liabilities, as well as certain non-Bendix asbestos liabilities, to Delticus, a leading institutionally capitalized corporate liability acquisition platform.
Under the terms of the agreement, Honeywell and Delticus contributed approximately $1.68 billion in cash, as well as certain insurance assets related to these legacy asbestos liabilities, to the newly established structure. Delticus assumed full responsibility for administering and resolving all current and future asbestos-related claims associated with the acquired liabilities. Honeywell utilized a portion of the approximately $1.6 billion in cash received from the recently announced Resideo Indemnification and Reimbursement Agreement termination transaction to fund the Delticus transaction.
The transaction allows Honeywell to permanently divest these legacy asbestos liabilities and transfer them to a high-quality partner in Delticus, providing finality and allowing the company to focus on redeploying capital toward core growth priorities. The timing also aligns with Honeywell’s overall efforts to simplify its portfolio in advance of its planned separation into three independent, industry-leading companies, which is expected to be completed in the second half of 2026.
Honeywell will have no further financial exposure to the transferred liabilities, which will be fully managed and administered by Delticus and for which Honeywell is fully indemnified.
Financial Impact
The estimated impact of the divestiture will be a one-time after-tax loss of approximately $115 million and the loss will be excluded from Adjusted Earnings Per Share. Additionally, because Delticus is taking over these liabilities, the transaction is expected to improve annual free cash flow by more than $100 million over the next several years and then decrease over time.
