By Robb M. Stewart

 

APi Group Corp. has struck a deal to buy Carrier Global Corp.'s Chubb Fire & Security business for an enterprise value of $3.1 billion in a bid to transform itself into a top global safety-services provider.

The provider of safety, specialty and industrial services said the deal for the U.K.-based business, which has about 13,000 employees around the world and a network in 17 countries, includes a $2.9 billion cash payment and about $200 million in assumed liabilities and other adjustments.

Blackstone Group Inc. and Viking Global Investors will partner with APi in the acquisition, providing a combined $800 million investment in perpetual preferred equity.

Russ Becker, APi's president and chief executive, said the company had spent a lot of time evaluating several opportunities it considered transformative, as well as more traditional acquisitions.

"With the acquisition of Chubb, we see a tremendous amount of accelerated organic growth and margin expansion opportunities across our combined platform," Mr. Becker said.

The additional of Chubb will strengthen APi's recurring revenue and is expected to boost earnings and offer synergy benefits, the company said. Chubb had revenue of about $2.2 billion in the 12 months to March 31 and adjusted earnings before interest, tax, depreciation and amortization of about $213 million, it said.

APi said Blackstone has a global property portfolio and as a partner is expected to provide an opportunity to open new customer relationships in multiple markets.

Carrier Global said the sale of the business would allow it to focus on its core businesses and to re-allocate proceeds in line with its priorities, including funding organic and inorganic growth, dividends and share buybacks. Its global fire and security products business isn't part of the deal with APi.

It said the sale is subject to a consultation process and regulatory approvals, and is expected to close late in the final quarter of this year or early in the first quarter of 2022.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

July 27, 2021 07:43 ET (11:43 GMT)

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