Carrier Global Corporation (NYSE: CARR) has announced the sale of its commercial and residential fire business to an affiliate of Lone Star Funds for an enterprise value of $3 billion. This sale is part of Carrier's strategic transformation to become a more focused, agile, higher-growth, pure-play company. The company's chairman and CEO, David Gitlin, expressed pride in the accomplishment, noting that this sale, combined with previous divestitures, represents a mid-teens EBITDA multiple in aggregate.
Since the acquisition of Viessmann Climate Solutions in January, Carrier has made significant strides in reducing its net debt by over $5 billion through the repayment of outstanding term loans and notes. In light of this de-leveraging, the company anticipates redeploying the estimated $2.2 billion in net proceeds from the transaction towards share repurchases.
The sale of the commercial and residential fire business represents a critical milestone in Carrier's portfolio transformation, following the successful divestitures of its industrial fire and global access solutions businesses. The company also indicated that the closing of the commercial and residential fire business is expected by the end of 2024, subject to regulatory approvals and customary closing conditions.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are serving as financial advisors to Carrier, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are providing external legal counsel.
This announcement underscores Carrier's commitment to creating solutions that matter for people and the planet for generations to come, as it continues to navigate its transformational journey. Today the company's shares have moved 3.9% to a price of $68.22. For the full picture, make sure to review Carrier Global's 8-K report.
