Carrier to sell its Chubb fire & security business for US$3.1 billion
July 28, 2021 By SP&T Staff
Carrier Global Corporation announced Tuesday it has agreed to sell its Chubb fire and security business to APi Group Corporation for an enterprise value of $3.1 billion.
According to a statement from Carrier, the sale enables the company to “focus on its core businesses and to re-allocate net proceeds consistent with its stated capital allocation priorities, including funding organic and inorganic growth, dividends, and share repurchases within a solid investment grade credit rating.”
Chubb is based in the U.K. and has approximately 13,000 employees globally and a sales and service network spanning 17 countries in Europe, Asia Pacific and Canada. The business is a fire safety and security provider, offering services from design and installation to monitoring and ongoing maintenance.
Carrier added that its global fire and security products business is not part of the transaction “and remains an important part of Carrier’s portfolio and our healthy, safe, sustainable and intelligent building strategy.”
“Carrier continually assesses all aspects of our global portfolio to ensure alignment with our strategic business priorities and optimal value for our stakeholders,” said Carrier chairman & CEO Dave Gitlin. “This transaction drives greater focus for Carrier and allows us to re-allocate proceeds from the divestiture toward our higher strategic imperatives. It also provides Chubb the opportunity to unlock new potential, building on its history and dedication to customer service excellence, its 200-year brand legacy and highly skilled network of global service providers and technicians. We look forward to seeing the growth potential Chubb will have under the ownership of APi Group.”
The proposed sale is subject to a consultation process and regulatory approvals and is expected to close in late 2021 or early 2022.
BofA Securities is acting as financial advisor to Carrier, and Paul, Weiss, Rifkind, Wharton & Garrison and Linklaters are acting as external legal counsel.
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