Carrier Global Corp. is continuing the major portfolio shift it began last year by selling its Industrial Fire business to Sentinel Capital Partners.
The deal, valued at $1.4 billion, includes brands Det-Tronics, Marioff, Autronica and Fireye. It’s Carrier’s third major move since the company announced a year ago that it would exit the fire and security business.
"Industrial Fire is a great business with leadership positions in the markets in which it operates, and an engaged, experienced team focused on delivering differentiated solutions to customers,” said Carrier Chairman & CEO David Gitlin. “We look forward to watching its continued growth under the ownership of Sentinel."
Carrier said the sale will allow for the company’s further transformation into a “more focused, higher growth company” as Carrier seeks to become the global leader in intelligent climate and energy solutions.
With approximately 1,400 employees operating in more than 20 countries, Carrier's Industrial Fire business is a global leader in fire detection and suppression solutions for high-hazard applications across verticals such as critical infrastructure, oil and gas, marine and clean energy.
The pending sale will allow Industrial Fire to build on the strength of its advanced lifecycle solutions, strong customer relationships and high growth potential across key segments, Carrier said.
Carrier expects net proceeds from the transaction to exceed $1.1 billion and the company intends to use the proceeds to pay down debt. The company anticipates resuming share repurchases as it returns to approximately 2X net leverage by the end of 2024. Closing is expected in the third quarter of 2024 and is subject to regulatory approvals and customary closing conditions.
When Carrier announced its intentions last year, the company purchased Viesmann Climate Solutions for $13.1 billion in cash. Then Carrier opted to sell its Global Access Solutions business to Honeywell for nearly $5 billion, and its Commercial Refrigeration business to Haier for $775 million.
The company said it’s preparing for the last of its four announced business exits - its combined commercial and residential fire businesses.
