Carrier announces agreement to sell global access solutions business to Honeywell for $4.95 billion

Palm Beach Gardens, Florida, December 8, 2023 /PRNewswire/ — Carrier Global Corporation (NYSE: CARR), a global leader in smart climate and energy solutions, today signed a definitive agreement to sell its security business, Global Access Solutions, which includes the industry-leading brand LenelS2 , Supra and Onity acquire Honeywell (NASDAQ: HON ) with an enterprise value of $4.95 billion, which is approximately 17 times the expected EBITDA in 2023. This sale agreement is the first step in the successful transformation of Carrier’s portfolio.

Carrier’s Global Access Solutions business has approximately 1,200 employees in 33 countries and is an innovative global leader in advanced access and security solutions, electronic locking systems and contactless mobile key solutions. The pending sale will allow the company to build on the strength of its leading brands, innovative solutions, strong partnerships and high growth potential.

“Global Access Solutions is a great business with a dedicated, customer-focused team, and we look forward to watching it continue to grow under the Honeywell umbrella,” said Carrier Chairman and CEO. David Gitlin. “This transaction, combined with our planned exits from the industrial fire protection, residential and commercial fire protection, and commercial refrigerated cabinet businesses, will accelerate our growth strategy and focus, position Carrier to achieve higher growth and superior shareholder value, and further Building on our track record of performing while transforming.”

Carrier expects net proceeds from the transaction to be approximately $4 billion It plans to use the proceeds to pay down debt. The company expects to resume share repurchases once its net leverage returns to approximately 2x EBITDA.

Beginning in the fourth quarter of 2023, Carrier expects to classify the Global Access Solutions business as “held for sale” on its balance sheet but will remain a going concern until the sale closes.

The proposed sale is subject to regulatory approvals and customary closing conditions. It is expected to be completed by the end of the third quarter of 2024.

Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC served as financial advisors to Carrier. Outside legal counsel was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP.

Editor’s Note: Honeywell published a separate release today Press release About transactions.

About Carrier

Carrier Global Corporation is a global leader in smart climate and energy solutions, creating solutions that matter for future generations and the planet. From the beginning, we have been a leader in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts our customers at the center of everything we do. For more information, visit www.corporate.rier.com or follow Carrier on social media: @carrier.

Cautionary Statement

Statements contained in this press release that are not statements of historical or current fact constitute “forward-looking statements” within the meaning of 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,” “anticipate,” “expect,” “plan,” “strategy,” “prospects,” “estimates,” “projects,” “goals” and other words. “Expect,” “will,” “should,” “see,” “guidance,” “outlook,” “confident,” “scenario” and other words of similar meaning in connection with discussions of future operating or financial performance. Forward-looking statements may include statements related to the sale of our securities business, the anticipated use of the resulting net proceeds, Carrier’s strategies or transactions, Carrier’s debt plans and other statements that are not historical facts. . All forward-looking statements involve risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. For more information regarding the identification of factors that could cause actual results to differ materially from those described in forward-looking statements, please refer to Carrier’s reports on Forms 10-K, 10-Q and 8-K filed or furnished to the Securities and Exchange Commission. . Any forward-looking statements speak only as of the date they are made, and Carrier undertakes no obligation to update or revise such statements, whether as a result of new information, future events or otherwise, except as required by applicable law. When we provide EBITDA expectations forward-looking, it is generally not possible to reconcile the differences between non-GAAP expectations and the corresponding GAAP measure (expected net income attributable to common stockholders) without unreasonable effort because of the potential High profits Variability, complexity and low visibility of items that would be excluded from GAAP measures in relevant future periods, such as abnormal gains and losses, the final outcome of pending litigation, fluctuations in foreign currency exchange rates, potential acquisitions and divestitures, future restructuring costs and other structural changes or their possible significance. The variability in excluded items could have a material and potentially unpredictable impact on our future GAAP results.

CAR-IR

SOURCE: Open Universal