Carrier Transforms Its Portfolio With €12B Acquisition Of Viessmann Climate Solutions

Carrier Global Corp CARR announces the acquisition of Viessmann Climate Solutions, a segment of Viessmann Group, in a cash and stock transaction valued at €12 billion.
Viessmann Family will receive 20% of the purchase price in Carrier stock with a long-term commitment to hold shares.
Privately held Viessmann Climate Solutions is headquartered in Allendorf, Germany, with a presence in Germany, Italy, France, and Poland. It expects FY23 sales of ~€4 billion and EBITDA of ~€0.7 billion.
The deal value equates to ~13X synergized projected 2023 EBITDA; and ~€200 million annual cost synergies, to be realized by the third year.
Viessmann Climate Solutions provides Carrier with an iconic, premium brand in the fastest-growing area of the global heat pump and energy transition markets.
This transaction adds over 100 bps to Carrier's revenue and EBITDA growth profile. CARR expects a high-single-digit FCF yield starting in year 5. The acquisition is expected to be modestly dilutive in 2024 to adjusted EPS, accretive in 2025, and increasingly accretive thereafter.
Carrier also disclosed plans to exit its Fire & Security and Commercial Refrigeration businesses over the course of 2024.
Carrier Global held cash and equivalents of $3.35 billion as of March 31, 2023.
"The acquisition of Viessmann Climate Solutions is a game-changing opportunity," said Carrier Chairman & CEO David Gitlin.
"The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions," added Gitlin.
Price Action: CARR shares are trading lower by 4.31% at $40.49 on the last check Wednesday.

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