Carrier Agrees To Acquire Toshiba's 55% Stake In TCC Joint Venture For ~$870M

Carrier Global Corp CARR has agreed to acquire Toshiba Corp's TOSBF 55% stake in Toshiba Carrier Corporation (TCC), a variable refrigerant flow (VRF) and light commercial HVAC joint venture. The enterprise value for 55% of TCC shares is around ¥100 billion (~$870 million).
Toshiba Carrier was established in 1999, which Toshiba and Carrier own 60% and 40%, respectively.
The transaction will include all of TCC's advanced research & development centers and global manufacturing operations, product pipeline, and the long-term use of Toshiba's iconic brand.
Related: Here's How Toshiba Looks To Restructure Itself
This acquisition strengthens Carrier's position in one of the fastest-growing HVAC segments and scales its global VRF product platform.
Carrier Global held cash and cash equivalents of $2.67 billion as of September 30, 2021.
The acquisition is expected to close by the end of Q3. Toshiba will retain a 5% ownership stake in TCC, and Carrier will consolidate over $2 billion in unconsolidated revenue.
Price Action: CARR shares closed lower by 0.87% at $45.84, and TOSBF lower by 1.47% at $41.50 on Friday.