Background of the Agreement:
Carrier Global Corporation, a world leader in climate and energy solutions, has agreed to sell its Global Access Solutions business—a global leader in security technologies—to Honeywell for $4.95 billion. This sale marks a significant first step in Carrier’s portfolio transformation.
Business Overview:
Global Access Solutions employs approximately 1,200 people and operates in 33 countries. The business is a global leader in advanced access and security technologies, including electronic locking systems and contactless mobile key solutions.
Strategic Rationale and Expected Outcomes:
The sale is expected to fuel the business’s continued growth by leveraging its strong brands, innovative solutions, robust partnerships, and high growth potential. Carrier Chairman and CEO David Gitlin stated that the transaction will accelerate Carrier’s growth strategy and sharpen its strategic focus, ultimately enhancing shareholder value.
Use of Proceeds and Financial Impact:
Carrier anticipates approximately $4 billion in net proceeds from the transaction, which will be used primarily to reduce debt. Once the company’s leverage returns to approximately 2x EBITDA, Carrier plans to begin repurchasing its own shares.
Closing Timeline:
The transaction is expected to close by the third quarter of 2024, subject to customary closing conditions and regulatory approvals.
