Carrier Global Corporation entered into a definitive agreement today to sell its global commercial refrigeration business to its decades-long joint venture partner Haier for an enterprise value of $775 million, including approximately $200 million of net pension liabilities. This represents about 16.5x 2023 expected EBITDA. Definitive agreements are now in place to exit businesses representing about half the EBITDA Carrier is divesting.
Carrier Commercial Refrigeration has more than 4,000 global employees and a sales and service network spanning Europe and the Asia Pacific region. Its brands include Profroid, Celsior and Green & Cool. Carrier Transicold transport refrigeration, Sensitech and its Lynx digital cold chain platform are not included in the transaction.
"Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them," said Carrier Chairman & CEO David Gitlin. "Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions. Following completion of our planned transactions, we will be a more focused, higher growth business, operating in attractive global market segments and benefiting from long-term secular tailwinds. I am deeply appreciative of our team's work to successfully position us for our future."
"Carrier Commercial Refrigeration is a preeminent global enterprise with respected brands, leading technology, and an experienced workforce dedicated to providing best-in-class solutions to customers globally," said Li Huagang, Chairman and CEO of Haier Smart Home. "The acquisition will help Haier Smart Home establish its commercial refrigeration platform, enabling the Company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage."
Carrier expects net proceeds from the transaction to exceed $500 million and intends to use the proceeds to reduce debt. The company anticipates resuming share repurchases as soon as its net leverage returns to approximately 2x EBITDA.
The transaction is expected to close in the second half of 2024 and is subject to customary closing conditions, including receipt of certain regulatory approvals, and works council consultation processes.
