Carrier Global Corporation (CARR) revealed its plan to sell its Commercial and Residential Fire business to an affiliate of Lone Star Funds for $3 billion. This transaction marks a significant step in Carrier’s ongoing portfolio transformation, which began with the acquisition of Viessmann Climate Solutions earlier this year and included the divestiture of its Industrial Fire and Global Access Solutions units.
The sale is expected to close by the end of 2024, subject to regulatory approvals and standard closing conditions. Upon completion, Carrier anticipates receiving approximately $2.2 billion in net proceeds. The company intends to utilize these funds for share repurchases, reflecting its commitment to enhancing shareholder value.
Carrier’s CEO, David Gitlin, highlighted the strategic importance of the sale, stating that it represents a defining step in their journey to become a focused, agile, and high-growth company dedicated to creating a more sustainable future. He emphasized the company’s commitment to executing divestitures, noting that they have now successfully completed all planned exits, totaling over $10 billion in combined value.
This transaction further underscores Carrier’s strategic focus on climate solutions and its commitment to becoming a leading player in the sustainable technology sector. The company’s recent financial performance, with second-quarter net sales rising 12% year-over-year to $6.70 billion, reflects its strong market position and growth trajectory.
