- Carrier Global Corp (NYSE:CARR) announces the acquisition of Viessmann Climate Solutions, a segment of Viessmann Group, in a cash and stock transaction valued at €12 billion.
- Viessmann Family will receive 20% of the purchase price in Carrier stock with a long-term commitment to hold shares.
- Privately held Viessmann Climate Solutions is headquartered in Allendorf, Germany, with a presence in Germany, Italy, France, and Poland. It expects FY23 sales of ~€4 billion and EBITDA of ~€0.7 billion.
- The deal value equates to ~13X synergized projected 2023 EBITDA; and ~€200 million annual cost synergies, to be realized by the third year.
- Viessmann Climate Solutions provides Carrier with an iconic, premium brand in the fastest-growing area of the global heat pump and energy transition markets.
- This transaction adds over 100 bps to Carrier’s revenue and EBITDA growth profile. CARR expects a high-single-digit FCF yield starting in year 5. The acquisition is expected to be modestly dilutive in 2024 to adjusted EPS, accretive in 2025, and increasingly accretive thereafter.
- Carrier also disclosed plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024.
- Carrier Global held cash and equivalents of $3.35 billion as of March 31, 2023.
- “The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said Carrier Chairman & CEO David Gitlin.
- “The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions,” added Gitlin.
- Price Action: CARR shares are trading lower by 4.31% at $40.49 on the last check Wednesday.
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