PALM BEACH GARDENS, Fla. – Carrier Global Corporation (NYSE: NYSE:CARR), a provider of climate and energy solutions, announced today the sale of its Industrial Fire business to private equity firm Sentinel Capital Partners. The deal, valued at $1.425 billion, is part of Carrier's strategic refocusing efforts, which includes the recent divestitures of other business units.
The Industrial Fire division, which employs about 1,400 people and operates in over 20 countries, specializes in fire detection and suppression for high-risk industries like oil and gas, marine, and clean energy. Carrier's Chairman & CEO, David Gitlin, praised the business for its market leadership and growth potential. He also expressed confidence in the continued expansion of the business under Sentinel's ownership.
Carrier's portfolio transformation has included the sale of its Global Access Solutions business to Honeywell (NASDAQ:HON) for nearly $5 billion and its Commercial Refrigeration business to Haier for $775 million. The company is also preparing to sell its combined commercial and residential fire businesses as the final step in this series of divestitures.
With the net proceeds from the sale exceeding $1.1 billion, Carrier plans to reduce debt and resume share repurchases, aiming for a net leverage ratio of approximately 2X by the end of 2024. The transaction is expected to close in the third quarter of 2024, pending regulatory approvals and customary closing conditions.
Goldman Sachs & Co (NYSE:GS). LLC and J.P. Morgan Securities LLC advised Carrier on the financial aspects of the deal, while Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP provided legal counsel.
This strategic move aligns with Carrier's vision to focus on high-growth areas and become a global leader in intelligent climate and energy solutions. The information reported is based on a press release statement.
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