Carrier Global Corporation, the world’s leading provider of intelligent climate and energy solutions, has 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 pivotal step in our planned exits, which are critical to our transformation into a focused, agile, higher-growth, pure-play company dedicated to creating a more sustainable world for generations to come,” said David Gitlin, Carrier chairman and CEO. “I am so proud of what our deal and business teams have accomplished. We have now closed all of our divestitures, all of which were signed within approximately one year of announcement, with a combined value of over $10 billion, representing a combined mid-teens EBITDA multiple. This reflects the tremendous commitment of so many, and I could not be more grateful for the tireless efforts and great work of our team.
The sale marks an important 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 near the end of the third quarter. The Commercial and Residential Fire business is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.
Following the acquisition of Viessmann Climate Solutions, Carrier has reduced its net debt by more than $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 the significant deleveraging this year, and consistent with prior communications, Carrier expects to use the estimated $2.2 billion in net proceeds from the transaction to repurchase shares.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are acting as financial advisors to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are acting as external legal advisors.
