Carrier Global Corporation, a global pioneer in intelligent climate and energy solutions, entered into a definitive agreement to sell its Commercial and Residential Fire business to an affiliate of Lone Star Funds for an enterprise value of $3 billion.
"The sale of our Commercial and Residential Fire business marks a defining step in our planned business exits critical to our transformational journey to becoming a focused, agile, higher-growth, pure-play company dedicated to creating a more sustainable world for generations to come," said Carrier Chairman & CEO David Gitlin.
Carrier's portfolio transformation
Commercial Refrigeration sale is on track to close around the end of the third quarter
David Gitlin added: "I am so proud of what our deal and business teams have accomplished. We now have executed deals on all our divestitures, all signed within about a year of announcement, with a combined value of over $10 billion, representing a mid-teens EBITDA multiple in aggregate. This reflects tremendous dedication by so many, and I could not be more appreciative of our team's tireless efforts and great work."
The sale announced marks a critical milestone in Carrier's portfolio transformation, following the acquisition of Viessmann Climate Solutions in January and the successful divestitures of its Industrial Fire and Global Access Solutions businesses. The Commercial Refrigeration sale is on track to close around the end of the third quarter. Closing of the Commercial and Residential Fire business is expected by the end of 2024, subject to regulatory approvals and customary closing conditions.
Acquisition of Viessmann Climate Solutions
Following the acquisition of Viessmann Climate Solutions, Carrier has reduced its net debt by over $5 billion through the repayment of outstanding term loans and notes, including last week's successful tender for additional outstanding debt. As a result of significant de-leveraging this year, and consistent with prior messaging, Carrier expects to redeploy the estimated $2.2 billion in net proceeds from the transaction towards share repurchases.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Linklaters LLP are providing external legal counsel.
