PALM BEACH GARDENS, Fla. - Carrier Global Corporation (NYSE: NYSE:CARR), a provider of intelligent climate and energy solutions, has finalized the divestiture of its security business, Global Access Solutions, to Honeywell (NASDAQ: NASDAQ:HON) for $4.95 billion. This transaction marks a significant step in Carrier's ongoing transformation to streamline its focus on its core businesses.
The sale was completed today, as confirmed by Carrier Chairman & CEO David Gitlin, who highlighted the company's strategic repositioning efforts, including the recent acquisition of Viessmann Climate Solutions and planned sales of other non-core businesses. Gitlin expressed gratitude to the Global Access Solutions team for their dedication and anticipated the business's continued success under Honeywell's ownership.
Carrier intends to allocate the net proceeds from this and upcoming sales to reduce its debt, aiming to achieve a net leverage ratio of approximately 2x EBITDA by the end of 2024. Additionally, the company anticipates resuming its share repurchase program within the same timeframe.
The financial advisors for Carrier in this transaction were Goldman Sachs (NYSE:GS) & Co. LLC and J.P. Morgan Securities LLC, with external legal counsel provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP.
Carrier is committed to addressing environmental challenges while maintaining a customer-centric approach. The company's strategic divestitures are part of a broader transformation intended to sharpen its focus on high-growth areas.
This news is based on a press release statement from Carrier Global Corporation.
InvestingPro Insights
In the wake of Carrier Global Corporation's (NYSE: CARR) divestiture of its security business, the company's financial health and strategic focus remain of paramount interest to investors. According to recent data from InvestingPro, Carrier boasts a robust market capitalization of $56.93 billion, indicating a strong presence in the market. The company's commitment to shareholder returns is exemplified by its consistent dividend growth, with dividends having been raised for four consecutive years.
Carrier's strategic repositioning seems to be resonating well with analysts, as evidenced by the fact that 9 analysts have revised their earnings projections upwards for the upcoming period. This optimism is supported by the company's expected net income growth this year, which aligns with its plans to reduce debt and potentially resume share repurchases by the end of 2024. Investors may also note Carrier's high Price / Book multiple of 4.92, suggesting a premium valuation that reflects its status as a prominent player in the Building Products industry.
For those looking to delve deeper into Carrier's financials and future prospects, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available for Carrier, providing a comprehensive analysis of the company's performance and valuation. Interested investors can access these tips and take advantage of the exclusive offer using coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/CARR.
Carrier's recent activities, including the divestiture and acquisitions, are part of a larger strategy to enhance its core business segments. With its focus on intelligent climate and energy solutions and a commitment to innovation, Carrier continues to navigate the dynamic market landscape effectively.
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