Carrier Global Set to Divest Fire Business to Lone Star Funds
$3 Billion Deal to Enhance Focus on Core Operations
Key Points:
- Carrier Global Corp. to divest its commercial and residential fire business.
- Private equity firm Lone Star Funds to acquire the unit for an enterprise value of $3 billion.
- The deal aligns with Carrier's strategy to focus on its core intelligent climate control operations.
In a strategic move, Carrier Global Corporation (NYSE: CARR) has announced plans to sell its commercial and residential fire business to an affiliate of private equity firm Lone Star Funds. The deal, valued at $3 billion in enterprise value, is expected to close in the fourth quarter of 2024, subject to customary closing conditions and regulatory approvals.
Carrier's decision to divest its fire business reflects its focus on optimizing its portfolio and enhancing shareholder value. The company will continue to prioritize its core intelligent climate control solutions, including HVAC, refrigeration, and fire and security systems.
Lone Star Funds, known for its expertise in acquiring and managing industrial and energy assets, will provide the fire business with dedicated resources and expertise to support its growth and innovation. The acquisition is expected to benefit both employees and customers by enabling the business to expand its capabilities and reach new markets.
The transaction has been unanimously approved by Carrier's Board of Directors. The company expects to use the proceeds from the sale to reduce debt and invest in its core businesses.
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