PALM BEACH GARDENS, Fla. -- Carrier Global Corporation, a global leader in 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. This business includes the brand names of Kidde, Edwards, GST, and Aritech.
Carrier Chairman and CEO David Gitlin said the sale, "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.
Gitlini said Carrier has executed deals on all its 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.
Executives said the sale 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.
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," Carrier said it expects to redeploy the estimated $2.2 billion in net proceeds from the transaction towards share repurchases.
