December Week 3: Carrier Announces Agreement to Sell Global Access Solutions Business to Honeywell for $4.95 Billion.

Recently, 霍尼韦尔 (Nasdaq: HON) revealed strategic initiatives aimed at fortifying its building automation prowess through the acquisition of Carrier Global Corporation's (NYSE: CARR) Global Access Solutions business. In an all-cash transaction totalling $4.95 billion.

Carrier has officially entered into a definitive agreement to divest its security business, Global Access Solutions. This includes renowned brands such as LenelS2, Supra, and Onity . The acquirer, Honeywell (NASDAQ: HON), is set to acquire this segment for an enterprise value of $4.95 billion, translating to approximately 17 times the expected EBITDA for 2023.

Boasting a workforce of around 1,200 across 33 countries, Carrier's Global Access Solutions business stands out as a pioneering global force in advanced access and security solutions. Renowned for its expertise in electronic locking systems and contactless mobile key solutions, the business is at the forefront of innovation.

The imminent sale opens the door for the business to leverage the robust foundation it has built, encompassing leading brands, cutting-edge solutions, robust partner relationships, and substantial growth potential. This strategic move marks a successful initial phase in Carrier's ongoing portfolio transformation journey.

"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."

"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.”

- Carrier Chairman & CEO?David Gitlin.

Envisaging net proceeds of around $4 billion from the transaction, Carrier is strategically allocating these funds to debt reduction. The company plans to reinstate share repurchases once its net leverage approximates 2 times EBITDA.

Commencing in the fourth quarter of 2023, Carrier anticipates categorising the Global Access Solutions business as "held for sale" on the balance sheet, yet its results will persist within continuing operations until the transaction concludes.

The proposed sale is contingent on regulatory approvals and standard closing conditions. The anticipated closing is slated for completion before the conclusion of the third quarter in 2024.

Conclusion:

In conclusion, Honeywell's recent strategic move to acquire Carrier Global Corporation's Global Access Solutions business for $4.95 billion in an all-cash transaction further supports Honeywell’s recently announced plans to align its portfolio to three compelling megatrends: automation, the future of aviation and energy transition, underpinned by robust digitalisation capabilities and solutions. automation sector. This acquisition positions Honeywell as a formidable player in advanced access and security solutions, leveraging the expertise and innovative technologies of Carrier's Global Access Solutions business.

While the sale is subject to regulatory approvals and standard closing conditions, Carrier anticipates categorising the Global Access Solutions business as "held for sale" on the balance sheet in the fourth quarter of 2023. The transaction is projected to conclude by the end of the third quarter in 2024. Overall, this strategic initiative reflects a well-planned approach by both companies to optimise their strengths, streamline their focus, and drive future growth in their respective areas of expertise.