Carrier Global Corporation, a global pioneer in intelligent climate and energy solutions, entered into a definitive agreement to sell its Industrial Fire business, which includes industry-renowned brands, Det-Tronics, Marioff, Autronica, and Fireye, to Sentinel Capital Partners for an enterprise value of $1.425 billion.
portfolio transformation
The announcement represents the latest step in Carrier's ongoing portfolio transformation, following the recent acquisition of Viessmann Climate Solutions and the recently announced agreements to sell Carrier's Global Access Solutions business to Honeywell for nearly $5 billion and its Commercial Refrigeration business to Haier for $775 million.
Carrier continues to prepare for the last of its four announced business exits, its combined commercial and residential fire businesses.
Carrier's Industrial Fire business
Carrier's Industrial Fire business is a global pioneer in fire detection and suppression solutions
With approximately 1,400 employees in more than 20 countries, Carrier's Industrial Fire business is a global pioneer in fire detection and suppression solutions for high-hazard applications across verticals such as critical infrastructure, oil and gas, marine, and clean energy.
This pending sale will allow the business to build on its advanced lifecycle solutions, strong customer relationships, and high growth potential across key segments.
climate and energy solutions
"Industrial Fire is a great business with leadership positions in the markets in which it operates, and an engaged, experienced team focused on delivering differentiated solutions to customers. We look forward to watching its continued growth under the ownership of Sentinel," said Carrier Chairman & CEO, David Gitlin.
David Gitlin adds, "This transaction marks another milestone in our transformation as we become a more focused, higher growth company, and furthers our vision to become the global leader in intelligent climate and energy solutions."
net proceeds
Carrier expects net proceeds from the transaction to exceed $1.1 billion and intends to use the proceeds to pay down debt. The company anticipates resuming share repurchases as it returns to approximately 2X net leverage by the end of 2024.
Closing is expected in the third quarter of 2024 and is subject to regulatory approvals and customary closing conditions. Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC serve as financial advisors to Carrier. Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Linklaters LLP are providing external legal counsel.