Carrier Global to sell Global Access Solutions business to Honeywell for $4.95B

Carrier Global (CARR) entered into a definitive agreement to sell its security business, Global Access Solutions to Honeywell (HON) for an enterprise value of $4.95B, which represents approximately 17x 2023 expected EBITDA. With approximately 1,200 employees operating in 33 countries, Carrier’s Global Access Solutions business specializes in advanced access and security solutions, electronic locking systems, and contactless mobile key solutions. Carrier expects net proceeds from the transaction to be approximately $4B and intends to use the proceeds to pay down debt. The company anticipates resuming share repurchases as soon as its net leverage returns to approximately 2x EBITDA. Beginning in the fourth quarter of 2023, Carrier expects to classify the Global Access Solutions business as “held for sale” on the balance sheet, but the results will remain in continuing operations until the sale closes. The proposed sale is subject to regulatory approvals and customary closing conditions. It is expected to close before the end of Q3 2024.