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Honeywell to acquire Carrier’s Global Access Solutions business for US$4.95B
December 12, 2023 By SP&T Staff
Honeywell announced the acquisition of Carrier Global Corp.’s Global Access Solutions business for US$4.95 billion in an all-cash transaction.
The acquisition will bring three brands to Honeywell — LenelS2, Onity and Supra — and is in line with its plan to align its portfolio to three megatrends — automation, the future of aviation and energy transition — according to the company.
“Honeywell’s strong track record delivering building automation products and services makes this a natural fit that will create a leading security platform with forecasted annual revenue in excess of $1 billion,” said Vimal Kapur, CEO, Honeywell, in a statement. “By leveraging the capabilities of the combined company’s advanced security and safety systems, customers will be able to maximize their performance, efficiency and cost-effectiveness and create long-term, sustainable value.”
According to a Honeywell press release, the purchase price represents approximately 13x 2023E EBITDA, inclusive of tax benefits and run-rate cost synergies. The transaction is expected to be cash-EPS accretive in the first full year of ownership.
In a separate statement, Carrier said the sale agreement “is a successful first step in Carrier’s portfolio transformation.”
“Global Access Solutions is a great business with dedicated, customer-focused teams, and we look forward to watching its continued growth under the ownership of Honeywell,” said Carrier chairman and CEO David Gitlin. “The transaction, together with the planned exits of our Industrial Fire, Residential and Commercial Fire, and Commercial Refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming.”
The transaction is expected to close by the end of the third quarter of 2024, subject to customary closing conditions and certain regulatory approvals.
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