Carrier Global Corporation, a renowned company, has recently made a significant business decision. They have entered into an agreement to sell their global commercial refrigeration business to Haier, a leading player in the industry. The deal is valued at an impressive $775 million, which includes the assumption of around $200 million in net pension liabilities. This move is expected to have a notable impact on both companies involved. In a significant development, the projected EBITDA for the year 2023 is estimated to be approximately 16.5 times the current value.
Carrier has announced the sale of its Global Access Solutions business, a significant step towards portfolio transformation. This transaction represents yet another significant step forward for the company. Carrier Commercial Refrigeration, a leading company in the refrigeration industry, employs over 4,000 people worldwide. With a strong presence in Europe and Asia Pacific, the company has built a strong sales and service network to serve its global clientele. The company expects over $500 million in net proceeds and intends to reduce debt. In a recent announcement, the company stated that it expects to generate net proceeds in excess of $500 million.
"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 the 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."
This strategic move is intended to strengthen the company's financial position while also paving the way for future growth and stability. Pending regulatory approvals and consultation processes, the transaction is expected to close in the second half of 2024.
Source: Carrier
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