Carrier Sells Chubb Fire & Security Business for $3.1B

The sale is said to enable Carrier to focus on its core businesses and to re-allocate net proceeds consistent with its stated capital allocation priorities.

Carrier Sells Chubb Fire & Security Business for $3.1B

PALM BEACH GARDENS, Fla. — Carrier Global Corp. (NYSE: CARR) announces it has agreed to sell its Chubb fire and security business to APi Group Corp. (NYSE: APG) for an enterprise value of $3.1 billion. Carrier’s global fire and security products business is not part of the transaction.

The sale is said to enable Carrier 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 a leading global provider of fire safety and security solutions for an array of vertical markets, including banking and finance, commercial and offices, education, government, healthcare and more.

“Carrier continually assesses all aspects of our global portfolio to ensure alignment with our strategic business priorities and optimal value for our stakeholders,” says 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.”

Chubb was originally shopped by United Technologies Corp. (UTC) — which Carrier operated under until its split last year — in 2018 and was rumored to fetch around $3 billion. UTC ultimately put the brakes on selling the business after bids from prospective buyers, which included private equity firms Apax Partners, PAI Partners and Eurazeo SE, came in below UTC’s expectations.

UTC acquired Chubb for $1 billion in 2003. In 2019, UTC announced it would start winding down its Interlogix business in a move that blindsided the company’s reps and customers.

The proposed sale to APi Group Corp. is subject to a consultation process and regulatory approvals. It is expected to close in late Q4 2021 or early Q1 2022. Management will provide additional details on the transaction and use of proceeds during its second-quarter 2021 earnings call on July 29, 2021.

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