APi Buys Carrier Global's Chubb Fire & Security Arm for $3.1 Billion Enterprise Value
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
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
"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 firstname.lastname@example.org
(END) Dow Jones Newswires
July 27, 2021 07:43 ET (11:43 GMT)
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