Honeywell International Inc said Tuesday it will pare its focus to four business lines, including aerospace, and spin off two businesses with $7.5 billion in revenue to help fund acquisitions.

The reorganization, which reduces revenue by about 18 percent, will simplify Honeywell’s broad portfolio, boost growth and give shareholders a tax-free benefit from the new companies, Honeywell Chief Executive Officer Darius Adamczyk said on a conference call on Tuesday.

It also gives the diversified manufacturer scope to change its remaining portfolio along the lines sought by hedge fund Third Point Capital, which agitated for a spin-off of aerospace. Third Point said on Tuesday it was pleased with the changes and backed Adamczyk’s leadership, though it wants him to keep improving the portfolio.

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