PALM
BEACH GARDENS, Fla., Dec. 13,
2023 /PRNewswire/ -- Carrier Global
Corporation (NYSE: CARR), global leader in intelligent climate
and energy solutions, entered into a definitive agreement today to
sell its global commercial refrigeration business to its
decades-long joint venture partner Haier (stock ticker: 600690) for
an enterprise value of $775 million,
including approximately $200 million
of net pension liabilities. This represents about 16.5x 2023
expected EBITDA. Today's announcement follows last week's agreement
to sell Carrier's Global Access Solutions business and marks
another meaningful step forward in the company's portfolio
transformation. Definitive agreements are now in place to exit
businesses representing about half the EBITDA Carrier is
divesting.
Carrier Commercial Refrigeration has more than 4,000 global
employees and a sales and service network spanning Europe and the Asia
Pacific region. Its brands include Profroid, Celsior and
Green & Cool. Carrier Transicold transport refrigeration,
Sensitech and its Lynx digital cold chain platform are not included
in the transaction.
"Following our decision to exit the commercial refrigeration
business and a robust competitive process, we identified Haier as
the right fit to grow the business moving forward, building upon
our successful 22-year refrigeration partnership with them," said
Carrier Chairman & CEO David
Gitlin. "Executing this definitive agreement demonstrates
continued progress in our portfolio transformation, further
positioning Carrier as the global leader in intelligent climate and
energy solutions. Following completion of our planned transactions,
we will be a more focused, higher growth business, operating in
attractive global market segments and benefiting from long-term
secular tailwinds. I am deeply appreciative of our team's work to
successfully position us for our future."
"Carrier Commercial Refrigeration is a preeminent global
enterprise with respected brands, leading technology, and an
experienced workforce dedicated to providing best-in-class
solutions to customers globally," said Li Huagang, Chairman
and CEO of Haier Smart Home. "The acquisition will help Haier Smart
Home establish its commercial refrigeration platform, enabling the
Company to capture additional growth opportunities by expanding its
presence to food retail refrigeration and cold storage."
Carrier expects net proceeds from the transaction to exceed
$500 million and intends to use the
proceeds to reduce debt. The company anticipates resuming share
repurchases as soon as its net leverage returns to approximately 2x
EBITDA.
The transaction is expected to close in the second half of 2024
and is subject to customary closing conditions, including receipt
of certain regulatory approvals, and works council consultation
processes.
BofA Securities is acting as financial advisor to Carrier, and
Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP
are acting as external legal counsel.
About Carrier
Carrier Global Corporation, global leader in intelligent climate
and energy solutions, is committed to creating solutions that
matter for people and our planet for generations to come. From the
beginning, we've led in inventing new technologies and entirely new
industries. Today, we continue to lead because we have a
world-class, diverse workforce that puts the customer at the center
of everything we do. For more information,
visit www.corporate.carrier.com or follow Carrier on
social media at @Carrier.
Cautionary Statement
This communication contains statements which, to the extent they
are not statements of historical or present fact, constitute
"forward-looking statements" under 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," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "outlook,"
"confident," "scenario" and other words of similar meaning in
connection with a discussion of future operating or financial
performance. Forward-looking statements may include, among other
things, statements relating to the sale of our commercial
refrigeration business, expected uses of the net proceeds
therefrom, strategies or transactions of Carrier, Carrier's plans
with respect to its indebtedness and other statements that are not
historical facts. All forward-looking statements involve risks,
uncertainties and other factors that may cause actual results to
differ materially from those expressed or implied in the
forward-looking statements. For additional information on
identifying factors that may cause actual results to vary
materially from those stated in forward-looking statements, see
Carrier's reports on Forms 10-K, 10-Q and 8-K filed with or
furnished to the U.S. Securities and Exchange Commission from time
to time. Any forward-looking statement speaks only as of the date
on which it is made, and Carrier assumes no obligation to update or
revise such statement, whether as a result of new information,
future events or otherwise, except as required by applicable law.
When we provide our expectations for EBITDA on a forward-looking
basis, a reconciliation of the differences between the non-GAAP
expectations and the corresponding GAAP measure (expected net
income attributable to common shareowners) generally is not
available without unreasonable effort due to potentially high
variability, complexity and low visibility as to the items that
would be excluded from the GAAP measure in the relevant future
period, such as unusual gains and losses, the ultimate outcome of
pending litigation, fluctuations in foreign currency exchange
rates, the impact and timing of potential acquisitions and
divestitures, future restructuring costs, and other structural
changes or their probable significance. The variability of the
excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.
CARR-IR
Contact:
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Investor
Relations
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Sam Pearlstein
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561-365-2251
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Sam.Pearlstein@Carrier.com
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Media
Inquiries
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Ashley
Barrie
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860-416-3657
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Ashley.Barrie@Carrier.com
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SOURCE Carrier Global Corporation