Carrier Completes $775M Sale of its Commercial Refrigeration Business to Haier

Rhea-AI Summary

Carrier Global (NYSE: CARR) has completed the sale of its commercial refrigeration business to Haier for an enterprise value of $775 million, including approximately $200 million of net pension liabilities. This sale, along with other completed and announced divestitures, is part of Carrier's portfolio transformation strategy to focus on its core businesses.

The transaction marks significant progress in Carrier's efforts to strengthen its global leadership position in intelligent climate and energy solutions. The net proceeds from the sale will be used to pay down debt. Carrier Transicold transport refrigeration, Sensitech, and the Lynx digital ecosystem were not included in the transaction and remain core to Carrier's vision.

BofA Securities acted as financial advisor to Carrier, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP served as external legal counsel.

Positive

• Completed sale of commercial refrigeration business for $775 million enterprise value
• Progress in portfolio transformation strategy
• Net proceeds to be used for debt reduction
• Retention of core businesses: Carrier Transicold, Sensitech, and Lynx digital ecosystem

Negative

• Divestiture of a business unit may impact overall revenue

PALM BEACH GARDENS, Fla., Oct. 2, 2024 /PRNewswire/ -- Carrier Global Corporation (NYSE: CARR), global leader in intelligent climate and energy solutions, today announced it has completed the sale of its commercial refrigeration business to its decades-long joint venture partner Haier (SSE: 600690) for an enterprise value of $775 million, including approximately $200 million of net pension liabilities. The sale, along with the completed divestitures of Industrial Fire and Global Access Solutions and the announced sale of Commercial and Residential Fire, enables Carrier to focus on its core businesses and demonstrates meaningful progress as the company nears the completion of its portfolio transformation.

Carrier Transicold transport refrigeration, Sensitech and the Lynx digital ecosystem are not included in the transaction and remain core to Carrier achieving its vision.

"The sale of Carrier Commercial Refrigeration marks a significant step in our portfolio transformation to further strengthen our company's global leadership position in intelligent climate and energy solutions," said Carrier Chairman & CEO David Gitlin. "Three of four announced business exits are now complete and the sale of Commercial and Residential Fire is expected to close by the end of 2024. I want to thank the thousands of Carrier Commercial Refrigeration employees for their contributions to the business and wish them the best with Haier."

As previously communicated, the net proceeds of the transaction will be used to pay down debt.

BofA Securities acted as financial advisor to Carrier, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP acted as external legal counsel.

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 industrial fire 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.

CARR-IR 

Contact:
Investor Relations
561-365-2251
InvestorRelations@Carrier.com

Media Inquiries
Rob Six
561-281-2362
Robert.Six@Carrier.com  

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SOURCE Carrier Global Corporation

FAQ

What is the value of Carrier's (CARR) sale of its commercial refrigeration business?

Carrier (CARR) sold its commercial refrigeration business to Haier for an enterprise value of $775 million, which includes approximately $200 million of net pension liabilities.

How will Carrier (CARR) use the proceeds from the sale of its commercial refrigeration business?

Carrier (CARR) has stated that the net proceeds from the sale of its commercial refrigeration business will be used to pay down debt.

Which businesses were not included in Carrier's (CARR) sale to Haier?

Carrier Transicold transport refrigeration, Sensitech, and the Lynx digital ecosystem were not included in the sale to Haier and remain core to Carrier's (CARR) vision.

What is the status of Carrier's (CARR) portfolio transformation as of October 2, 2024?

As of October 2, 2024, Carrier (CARR) has completed three of four announced business exits, with the sale of Commercial and Residential Fire expected to close by the end of 2024.