Carrier Completes $3.1B Sale of Chubb Fire & Security to APi Group Corp.
The purchase price is comprised of $2.9 billion cash and approximately $200 million of assumed liabilities and other adjustments.
PALM BEACH GARDENS, Fla. — Carrier Global Corp. (NYSE: CARR) announces it has completed the sale of its Chubb fire and security business to APi Group Corp. (NYSE: APG) for an enterprise value of $3.1 billion.
The sale is said to enable Carrier to focus on its core businesses and to re-allocate the net proceeds consistent with its stated capital allocation priorities, including funding organic and inorganic growth, a growing and sustainable dividend, and share repurchases while maintaining a solid investment grade credit rating.
“The sale of Chubb enhances the growth, margin and free cash flow profile of Carrier. We will continue to drive growth in our core business and play offense on capital deployment, including evaluating inorganic opportunities to complement our existing portfolio, share repurchase and the 25% increase in our dividend announced in December 2021,” says Carrier Chairman & CEO Dave Gitlin. “I want to thank the thousands of Chubb employees for their contributions to the business over the years.”
Carrier’s global fire and security products business is not included in this transaction with APi Group and remains a part of the portfolio and the company’s healthy, safe, sustainable and intelligent building strategy.
Russ Becker, APi’s president and CEO, says, “Today we welcome the 13,000 employees of Chubb to the APi family and begin the work of swiftly integrating Chubb into APi and leveraging the opportunities this acquisition creates. We begin 2022 as the world’s leading life safety services provider. Since announcing the acquisition on July 27, 2021, the level of excitement from our international customers and our teams about the opportunities the combined platform will bring has been extremely encouraging. This validates our belief that the transaction will be highly accretive with compelling synergies and that it will help accelerate revenue growth through cross-selling certain products and services.”
BofA Securities acted as financial advisor to Carrier, and Paul, Weiss, Rifkind, Wharton & Garrison and Linklaters acted as external legal counsel.
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