Honeywell Announces Court Approval of NARCO Trust Buyout and Planned Acquisition of HarbisonWalker by Platinum Equity

CHARLOTTE, N.C., Dec. 14, 2022 /PRNewswire/ -- Honeywell (NASDAQ: HON) has announced court approval of its buyout agreement with the North American Refractories Asbestos Personal Injury Settlement Trust (the "Trust"), which provides for the elimination of Honeywell's funding obligations to the Trust. Under the agreement and as previously announced, Honeywell will make a one-time, lump sum payment in the amount of $1.325 billion ("Buyout Amount") to the Trust, subject to certain deductions permitted under the buyout agreement. The buyout agreement was approved on December 8, 2022 by the United States Bankruptcy Court for the Western District of Pennsylvania. Upon the closing of the transactions in the buyout agreement, Honeywell will be released from its funding obligations to the Trust. With court approval of the buyout agreement, Honeywell will reduce the NARCO reserve ($695 million as of September 30, 2022) to its estimate of claims-related amounts to be paid to the Trust through closing and will also recognize a charge associated with the Buyout Amount and a related balance sheet impact in the fourth quarter of 2022.

All disclosed information on Honeywell's relationship with the Trust and HWI is available in our most recent 10-Q Q3 2022 10-Q Footnote #14- Commitments and Contingencies- Asbestos Matters and in our Current Reports on Form 8-K filed with the Securities and Exchange Commission on November 18, 2022 (as amended by a Form 8-K/A filed on November 18, 2022) and November 21, 2022.

Honeywell (www.honeywell.com/us/en) delivers industry-specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/us/en/news.

This document contains certain statements that may be deemed "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are those that address activities, events, or developments that management intends, expects, projects, believes, or anticipates will or may occur in the future. They are based on management's assumptions and assessments in light of past experience and trends, current economic and industry conditions, expected future developments, and other relevant factors. They are not guarantees of future performance, and actual results, developments, and business decisions may differ significantly from those envisaged by our forward-looking statements. We do not undertake to update or revise any of our forward-looking statements, except as required by applicable securities law. Our forward-looking statements are also subject to risks and uncertainties that can affect our performance in both the near- and long-term, including with respect to the closing of the HWI sale given its relationship to the above described fourth quarter of 2022 financial statement impacts. In addition, no assurance can be given that any plan, initiative, projection, goal commitment, expectation, or prospect set forth in this statement can or will be achieved. Any forward-looking plans described herein are not final and may be modified or abandoned. We identify the principal risks and uncertainties that affect our performance in our Form 10-K, Form 10-Qs, and other filings with the Securities and Exchange Commission.