Honeywell International Inc. will spin off its aerospace division to create a new, standalone company that will be headquartered in Phoenix, company officials announced Thursday.

Honeywell Aerospace will remain headquartered in Phoenix after being spun off from Honeywell International. The tax-free spinoff will result in three separate, publicly listed companies, each focused on distinct industries.

An activist investor's dream scenario has come to fruition with Honeywell's decision to break up the company. Here's how it will affect workers in Phoenix.