Carrier Global Corporation has entered into a definitive agreement to sell its global commercial refrigeration business to its decades-long joint venture partner Haier $US775 million.
This includes approximately $US200 million of net pension liabilities.
It 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 Chair & CEO, David Gitlin, said when a decision was made to exit the refrigeration business, the company identified Haier as the right fit for the business moving forward, building upon their 22-year refrigeration partnership with Haier.
"Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions,” Gitlin said.
“Following completion of our planned transactions, we will be a more focused, higher growth business, operating in attractive global market segments and benefiting from long-term secular tailwinds. I am deeply appreciative of our team's work to successfully position us for our future."
Chair & CEO of Haier Smart Home, Li Huagang, said Carrier Commercial Refrigeration is a preeminent global enterprise with respected brands, leading technology, and an experienced workforce dedicated to providing best-in-class solutions to customers globally.
"The acquisition will help Haier Smart Home establish its commercial refrigeration platform, enabling the company to capture additional growth opportunities by expanding its presence to food retail refrigeration and cold storage."
Carrier expects net proceeds from the transaction to exceed $US500 million and intends to use the proceeds to reduce debt.
The transaction is expected to close in the second half of 2024.