Honeywell announced on October 1, 2025 that it has divested all of its legacy Bendix asbestos liabilities to Delticus, a corporate liability acquisition platform. The deal involved a $1.68 billion cash contribution and the transfer of related insurance assets, with Delticus assuming responsibility for all current and future asbestos‑related claims.
The transaction was funded in part by cash received from the recently terminated Resideo Indemnification and Reimbursement Agreement, allowing Honeywell to permanently remove the asbestos liabilities from its balance sheet. Delticus will administer and resolve all claims, providing Honeywell with full indemnification and eliminating future financial exposure.
Financially, the divestiture results in a one‑time after‑tax loss of approximately $115 million, which will be excluded from adjusted earnings per share. The move is expected to increase annual free cash flow by more than $100 million over the next several years, before gradually declining as the liability profile normalizes.
Strategically, the divestiture aligns with Honeywell’s broader portfolio simplification plan ahead of the planned spin‑off of Solstice Advanced Materials and other separations, allowing the company to focus capital and management attention on its core growth businesses.
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