Honeywell's spin-off of their Advanced Materials business could potentially accelerate its organic growth and optimize their cost structures. See more here.

Honeywell's new CEO Vimal Kapur has been streamlining the company's portfolio over the past few years to shift focus toward its aviation, automation and energy segments. The advanced materials business accounted for 10% of Honeywell's total sales of $36.66 billion last year.

Honeywell shares are rising in premarket trading after the conglomerate said it plans to spin off its Advanced Materials division as it joins its peers in pursuing a more focused strategy.