Carrier to sell commercial and residential fire business to Lone Star Funds unit for $3 billion

By Ciara Linnane

Deal is the latest divestiture by the heating and cooling company

Carrier Global Corp. said Thursday it has agreed to sell its commercial and residential fire business to a unit of Lone Star Funds in a deal with an enterprise value of $3 billion.

The move "marks a defining step in our planned business exits critical to our transformational journey to becoming a focused, agile, higher-growth, pure-play company dedicated to creating a more sustainable world for generations to come," Chief Executive David Gitlin said in prepared remarks.

The deal is the last in a series of divestitures by the maker of heating and cooling systems. The combined value of the sales was more than $10 billion, he said.

After acquiring Viessmann Climate Solutions in January, Carrier has divested its industrial fire and global access solutions businesses.

The sale of its commercial refrigeration business is on track to close around the end of the third quarter. Today's deal is expected to close by year-end.

The company (CARR) has reduced its net debt by over $5 billion by repaying term loans and bonds. It expects to use an estimated $2.2 billion of sale proceeds to buy back stock.

The stock was up 0.5% premarket and has gained 14% in the year to date, matching the S&P 500's gains.

-Ciara Linnane

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08-15-24 0753ET

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