659826895905e8001dcc21eb Logo Of The Carrier Corporation

Carrier Adds Viessmann Unit in Flurry of Deals

Jan. 5, 2024
Industry giant acquires Climate Solutions group, just weeks after selling Commercial Refrigeration business.


PALM BEACH GARDENS, FL, Jan. 2, 2024 – Carrier Global Corporation (NYSE: CARR) announced today that it has completed its acquisition of Viessmann Climate Solutions from the Viessmann Group. The transaction marks another meaningful step forward in Carrier’s portfolio transformation, further strengthening the company’s global leadership position in intelligent climate and energy solutions.

The combination adds a premier brand with a differentiated direct-to-installer channel model and a key leading provider of highly efficient and renewable climate solutions with a 100+ year record of innovation and sustainability to Carrier’s existing portfolio. Viessmann Climate Solutions’ highly talented 12,000 team members further strengthen Carrier’s position as the leading HVAC provider globally, now positioning Carrier in the fast-growing Residential and Light Commercial (RLC) space in Europe.

Thomas Heim, who previously led Viessmann Climate Solutions, will lead Carrier RLC HVAC in Europe, the Middle East and Africa, which includes Viessmann Climate Solutions and Carrier’s RLC business in the region, including Riello.

“The combination with Viessmann Climate Solutions creates the most comprehensive and differentiated suite of sustainable climate technologies and services in the industry today,” said Carrier Chairman & CEO David Gitlin. “The transaction, together with the planned exits of our Fire & Security and Commercial Refrigeration businesses, will transform Carrier’s business into a higher growth business with a clear focus and mandate on global leadership in intelligent climate and energy solutions.”

Effective immediately, Max Viessmann, CEO of Viessmann Group, joins Carrier’s Board of Directors. “I look forward to working closely with Dave and his leadership team as well as my fellow Board Directors, to build a future-proof, truly global, climate champion,” said Viessmann. “I could not be more excited about this combination, which lays the perfect basis to capture growth opportunities and maximize impact for generations to come.”

The addition of Viessmann Climate Solutions positions Carrier as a digitally enabled, scalable, end-to-end sustainable climate and energy solutions provider that addresses all heating, cooling, renewables, solar PV, battery storage and energy management needs for the home.

Carrier Sells Global Commercial Refrigeration Unit

Last month, Carrier also entered into a definitive agreement to sell its global commercial refrigeration business to long-time joint venture partner Haier for an enterprise value of $775 million, including approximately $200 million of net pension liabilities.

This represents about 16.5 times the expected 2023 EBITDA (earnings before interest, taxes, depreciation, and amortization). The Dec. 13 announcement followed by a week a separate agreement to sell Carrier's Global Access Solutions business and marked another meaningful step forward in the company's portfolio transformation.

Definitive agreements are now in place to exit businesses representing about half the EBITDA that 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 CEO 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 & 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.

BofA Securities is acting as financial advisor to Carrier, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and Linklaters LLP are acting as external legal counsel.

About Carrier

Carrier Global Corporation, global leader in intelligent climate and energy solutions, is committed to creating solutions that matter for people and our planet for generations to come. From the beginning, we've led in inventing new technologies and entirely new industries. Today, we continue to lead because we have a world-class, diverse workforce that puts the customer at the center of everything we do. For more information, visit corporate.carrier.com or follow Carrier on social media at @Carrier.