Carrier to sell refrigeration unit to Haier for enterprise value of $775M

Carrier Global Corporation (CARR) entered into a definitive agreement to sell its global commercial refrigeration business to its decades-long joint venture partner Haier (HRSHF) for an enterprise value of $775M, including approximately $200M of net pension liabilities. This represents about 16.5x 2023 expected EBITDA. Today’s announcement follows last week’s agreement to sell Carrier’s Global Access Solutions business and marks another meaningful step forward in the company’s portfolio transformation. Definitive agreements are now in place to exit businesses representing about half the EBITDA 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. Carrier expects net proceeds from the transaction to exceed $500M 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.