PALM
BEACH GARDENS, Fla., Dec. 8, 2023
/PRNewswire/ -- Carrier Global Corporation (NYSE: CARR),
global leader in intelligent climate and energy solutions, entered
into a definitive agreement today to sell its security business,
Global Access Solutions, which includes the industry-leading brands
of LenelS2, Supra and Onity, to Honeywell (NASDAQ: HON)
for an enterprise value of $4.95
billion, which represents approximately 17x 2023 expected
EBITDA. The sale agreement is a successful first step in Carrier's
portfolio transformation.
With approximately 1,200 employees operating in 33 countries,
Carrier's Global Access Solutions business is an innovative global
leader in advanced access and security solutions, electronic
locking systems, and contactless mobile key solutions. This pending
sale will allow the business to build on the strength of its
leading brands, innovative solutions, strong partner relationships
and high growth potential.
"Global Access Solutions is a great business with dedicated,
customer-focused teams, and we look forward to watching its
continued growth under the ownership of Honeywell," said Carrier
Chairman & CEO David Gitlin.
"The transaction, together with the planned exits of our Industrial
Fire, Residential and Commercial Fire, and Commercial Refrigeration
cabinet businesses, will accelerate our growth strategy and focus,
positioning Carrier to deliver higher growth and superior
shareholder value and further reinforcing our track record of
performing while transforming."
Carrier expects net proceeds from the transaction to be
approximately $4 billion and intends
to use the proceeds to pay down debt. The company anticipates
resuming share repurchases as soon as its net leverage returns
to approximately 2x EBITDA.
Beginning in the fourth quarter of 2023, Carrier expects to
classify the Global Access Solutions business as "held for sale" on
the balance sheet, but the results will remain in continuing
operations until the sale closes.
The proposed sale is subject to regulatory approvals and
customary closing conditions. It is expected to close before the
end of Q3 2024.
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.
Note to editors: Honeywell today issued a separate
press release on the transaction.
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.
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 security 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. When we provide our
expectations for EBITDA on a forward-looking basis, a
reconciliation of the differences between the non-GAAP expectations
and the corresponding GAAP measure (expected net income
attributable to common shareowners) generally is not available
without unreasonable effort due to potentially high variability,
complexity and low visibility as to the items that would be
excluded from the GAAP measure in the relevant future period, such
as unusual gains and losses, the ultimate outcome of pending
litigation, fluctuations in foreign currency exchange rates, the
impact and timing of potential acquisitions and divestitures,
future restructuring costs, and other structural changes or their
probable significance. The variability of the excluded items may
have a significant, and potentially unpredictable, impact on our
future GAAP results.
CARR-IR
Contact:
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Investor
Relations
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Sam
Pearlstein
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561-365-2251
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Sam.Pearlstein@Carrier.com
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Media
Inquiries
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Ashley
Barrie
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860-416-3657
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Ashley.Barrie@Carrier.com
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SOURCE Carrier Global Corporation