01—Abstract
Summary
Summary of the 8-K filed December 13, 2023. Cited figures are marked; the original filing is the authoritative source.
Carrier Global Corporation has entered into a definitive agreement to sell its security business, Global Access Solutions, to Honeywell International Inc. for an enterprise value of $4.95 billiona.
This strategic divestiture is expected to close before the end of the third quarter of 2024, subject to customary closing conditions and regulatory approvals. The sale price is subject to adjustments based on working capital and net indebtedness of the business at closing. This move signals a significant shift in Carrier's strategic focus, likely allowing the company to concentrate on its core HVAC and refrigeration segments.
02—Key points
Key Highlights
- Carrier agrees to sell its Global Access Solutions security business to Honeywell for $4.95 billion.
- The transaction is structured as a stock purchase agreement.
- Closing is anticipated before the end of Q3 2024, contingent upon standard closing conditions and governmental approvals.
- The purchase price is subject to adjustments for working capital and net indebtedness.
- The deal is not contingent on financing or shareholder approval.
- Carrier has agreed to customary non-compete clauses for a period of two years post-closing in specified areas.
03—Questions
Frequently Asked Questions
What is being sold and to whom?
Carrier Global Corporation is selling its security business, known as Global Access Solutions, to Honeywell International Inc.
What is the sale price for the security business?
The enterprise value for the sale is $4.95 billion. This price is subject to adjustments based on the working capital and net indebtedness of the business at the time of closing.
When is the sale expected to be completed?
The closing is expected to occur before the end of the third quarter of 2024, provided all customary closing conditions, including regulatory approvals, are met.
Are there any restrictions on Carrier after the sale?
Yes, Carrier and its subsidiaries have agreed not to directly or indirectly engage in certain activities competitive with the sold business for two years following the closing, as specified in the agreement.
04—Continue