Climate and energy solutions provider Carrier Global (NYSE:CARR) has agreed to sell its Industrial Fire business to Sentinel Capital Partners at an enterprise valuation of $1.425 billion. The unit includes brands such as Det-Tronics, Marioff, Autronica, and Fireye.
This M & A move is part of Carrier’s overarching strategy to transform its portfolio. Under this objective, the company has so far acquired Viessmann Climate Solutions and sold its Global Access Solutions business to Honeywell (NASDAQ:HON) for $5 billion. Additionally, it offloaded its Commercial Refrigeration unit to Haier for $775 million.
Carrier’s Industrial Fire unit is a leading name in fire detection and suppression solutions. It caters to diverse end markets such as critical infrastructure, oil and gas, marine, and clean energy. Carrier plans to utilize the net proceeds from this deal towards paring down its debt. The transaction is anticipated to close in the third quarter of 2024. Importantly, the company plans to resume share repurchases.
What Is the Forecast for CARR Stock?
Carrier’s share price has rallied by nearly 18% over the past year. Overall, the Street has a Moderate Buy consensus rating on Carrier Global, and the average CARR price target of $61.25 points to a modest 7.2% potential upside in the stock.
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