Carrier Global Corporation announced the sale of its Commercial and Residential Fire business to an affiliate of Lone Star Funds for an enterprise value of $3 billion.
As reported by Carrier, the agreement aligns with its ongoing portfolio transformation strategy aimed at focusing on core business areas.
The sale is expected to close by the end of 2024, subject to regulatory approvals and closing conditions.
David Gitlin, Carrier’s Chairman & CEO, highlighted the importance of the sale: “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.”
Carrier has executed a series of deals as part of its portfolio transformation, including the acquisition of Viessmann Climate Solutions and other business divestitures.
Carrier has executed a series of business exits totaling over $10 billion in combined value within a year of the announcements.
The divestitures, including Industrial Fire and Global Access Solutions businesses, were part of Carrier’s strategy to focus on its core business areas and improve growth opportunities.
Carrier’s recent deal with Lone Star Funds for the Commercial and Residential Fire business represents the latest milestone in this transformation.
The sale follows Carrier’s acquisition of Viessmann Climate Solutions earlier this year.
Carrier has successfully reduced its net debt by more than $5 billion through the repayment of outstanding loans and notes.
The proceeds from the fire business sale, estimated at $2.2 billion, are expected to be directed towards share repurchases, continuing the company’s efforts to strengthen its financial position.
In addition to the sale of its fire business, Carrier is progressing with the planned divestiture of its Commercial Refrigeration segment.
The sale is expected to close by the end of the third quarter of 2024, marking another step in Carrier’s portfolio transformation.
The company’s portfolio strategy aims to focus on higher-growth areas, with proceeds from sales being redeployed to enhance shareholder value.
Carrier’s financial advisors on the transaction are Goldman Sachs & Co.
LLC and J.P.Morgan Securities LLC. Legal counsel is being provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP.
Carrier has enlisted Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC as financial advisors for the sale of its Commercial and Residential Fire business.
Legal advice is being provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP.
Lone Star Funds, a private equity firm with over $92 billion in capital commitments, will be acquiring the business.
Lone Star has organized 24 private equity funds since its inception in 1995, investing globally in corporate equity, credit, and real estate.
The sale represents a major shift for Carrier as it continues to restructure its portfolio towards more sustainable and growth-focused sectors.
Carrier’s leadership has emphasized that these moves will help to solidify the company’s market position and future growth trajectory.
Carrier Global Corporation has entered into a definitive agreement to sell its Commercial and Residential Fire business to Lone Star Funds for $3 billion.
The sale is part of Carrier’s ongoing portfolio transformation, which has seen the company divest several non-core businesses, raising over $10 billion.
Carrier’s CEO, David Gitlin, described the sale as a key step in the company’s transition to a more focused, agile, and growth-oriented operation.
The transaction is expected to close by the end of 2024, pending regulatory approvals.
Goldman Sachs and J.P. Morgan are advising Carrier, with Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP providing legal counsel.
