PALM BEACH GARDENS, Fla. , Aug. 15, 2024 /PRNewswire/ — Carrier Global Corporation (NYSE: CARR), a global leader in intelligent climate and energy solutions, today signed a definitive agreement to sell its commercial and residential fire alarm business to an affiliate of Lone Star Funds for an enterprise value of $3.0 billion.
“The sale of our commercial and residential insurance businesses marks a critical and decisive step in our planned divestitures on our transformation journey to become a focused, agile and more growth-oriented pure-play company dedicated to creating a more sustainable world for future generations,” said Carrier Chairman and CEO David Gitlin. “I am incredibly proud of what our transactional and business teams have accomplished. We have completed all of our closed divestiture transactions within approximately a year of announcing them, with total value exceeding $10 billion and EBITDA multiples in the mid-teens combined. This reflects a great deal of dedication from many people, and I couldn’t be more grateful to my team for their tireless efforts and great work.”
The divestitures announced today mark 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 sale of the Commercial Refrigeration division is expected to close around the end of the third quarter. The divestitures of the Commercial and Residential Fire divisions are expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.
Following its acquisition of Viesmann Climate Solutions, the 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 bid for additional outstanding debt. As a result of its significant debt reduction this year, and consistent with its previous messaging, the carrier intends to reallocate the estimated $2.2 billion of net proceeds from the transaction to share repurchases.
Goldman Sachs & Co. LLC and JP Morgan Securities LLC are acting as financial advisors to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are acting as outside legal counsel to Carrier.
About my career
Carrier Global Corporation, a global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and the planet for generations to come. From the beginning, we’ve been leading the way in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce and put our customers at the center of everything we do. For more information, visit www.corporate.carrier.com or follow Carrier on social media: @Career.
About Lone Star
Lone Star is a leading private equity firm advising funds that invest in corporate equity, credit, real estate and other financial assets globally. Since the launch of its first fund in 1995, Lone Star has organized 24 private equity funds with total capital commitments of approximately $92 billion. The firm organizes its funds in three series: the Opportunity Fund Series, the Commercial Real Estate Fund Series and the U.S. Mortgage Fund Series. Lone Star invests on behalf of institutional investors, such as pension funds and sovereign wealth funds, and limited partners, such as foundations and endowments that support medical research, higher education and other philanthropic endeavors. For more information about Lone Star Funds, please visit www.lonestarfunds.com.
Notes
This document contains statements that, to the extent that they are not statements of historical or current fact, constitute “forward-looking statements” under securities laws. These forward-looking statements are intended to provide management’s current expectations or plans regarding Carrier’s future operating and financial performance, based on assumptions currently believed to be valid. Forward-looking statements can be identified by words such as “believes,” “expects,” “anticipates,” “plans,” “strategy,” “outlook,” “estimates,” “projects,” “goals,” “anticipates,” “will,” “should,” “sees,” “guidance,” “outlook,” “confident,” “scenario,” and other words of similar meaning used in connection with discussions of future operating or financial performance. Forward-looking statements may include, among other things, statements regarding the sale of our Industrial Fires business and the expected uses of the net proceeds therefrom, Carrier’s strategy or transactions, Carrier’s plans for indebtedness, and other statements that are not historical facts. All forward-looking statements involve risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements. For more information identifying factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to Carrier’s reports on Forms 10-K, 10-Q and 8-K filed or furnished from time to time with the Securities and Exchange Commission. Forward-looking statements express only our views as of the date the statements are made, and Carrier undertakes no obligation to update or revise such statements, whether as a result of new information, future events or otherwise, except as required by applicable law.
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Source: Carrier Global Corporation
