PALM
BEACH GARDENS, Fla., Aug. 15,
2024 /PRNewswire/ -- Carrier Global
Corporation (NYSE: CARR), global leader in intelligent climate
and energy solutions, entered into a definitive agreement today to
sell its Commercial and Residential Fire business to an
affiliate of Lone Star Funds for an enterprise value of
$3 billion.
"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 dedicated to creating a more
sustainable world for generations to come," said Carrier Chairman
& CEO David Gitlin. "I am so
proud of what our deal and business teams have accomplished. We now
have executed deals on all our 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. This reflects tremendous dedication
by so many, and I could not be more appreciative of our team's
tireless efforts and great work."
The sale announced today 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, and consistent with prior messaging, Carrier expects to
redeploy the estimated $2.2 billion
in net proceeds from the transaction towards share repurchases.
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC are
serving as financial advisor to Carrier. Paul, Weiss, Rifkind,
Wharton & Garrison LLP and Linklaters LLP are providing
external legal counsel.
About Carrier
Carrier Global Corporation, global leader in intelligent climate
and energy solutions, is committed to creating solutions that
matter for people and our planet for generations to come. From the
beginning, we've led in inventing new technologies and entirely new
industries. Today, we continue to lead because we have a
world-class, diverse workforce that puts the customer at the center
of everything we do. For more information,
visit www.corporate.carrier.com or follow Carrier on
social media at @Carrier.
About Lone Star
Lone Star is a leading private
equity firm advising funds that invest globally in corporate
equity, credit, real estate and other financial assets. Since the
establishment of its first fund in 1995, Lone Star has organized 24 private equity funds
with aggregate capital commitments totaling 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. Residential Mortgage Fund
series. Lone Star invests on behalf
of its limited partners, which include institutional investors such
as pension funds and sovereign wealth funds, as well as foundations
and endowments that support medical research, higher education, and
other philanthropic causes. For more information regarding Lone
Star Funds, go to www.lonestarfunds.com.
Cautionary Statement
This communication contains statements which, to the extent they
are not statements of historical or present fact, constitute
"forward-looking statements" under the securities laws. These
forward-looking statements are intended to provide management's
current expectations or plans for Carrier's future operating and
financial performance, based on assumptions currently believed to
be valid. Forward-looking statements can be identified by the use
of words such as "believe," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "outlook,"
"confident," "scenario" and other words of similar meaning in
connection with a discussion of future operating or financial
performance. Forward-looking statements may include, among other
things, statements relating to the sale of our industrial fire
business, expected uses of the net proceeds therefrom, strategies
or transactions of Carrier, Carrier's plans with respect to its
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 additional information on identifying factors that may cause
actual results to vary materially from those stated in
forward-looking statements, see Carrier's reports on Forms 10-K,
10-Q and 8-K filed with or furnished to the U.S. Securities and
Exchange Commission from time to time. Any forward-looking
statement speaks only as of the date on which it is made, and
Carrier assumes no obligation to update or revise such statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law.
CARR-IR
Contact:
Investor Relations
Sam Pearlstein
561-365-2251
Sam.Pearlstein@Carrier.com
Media Inquiries
Rob Six
561-281-2362
Robert.Six@Carrier.com
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SOURCE Carrier Global Corporation