Carrier confirms €12bn Viessmann purchase
25th April 2023
USA/GERMANY: Carrier has confirmed it will acquire Viessmann Climate Solutions, the largest segment of Viessmann Group, in a cash and stock transaction valued at €12bn.
In a move which it says will transform its business portfolio, Carrier also plans to exit its Commercial Refrigeration and Fire & Security businesses.
Together, the new business will generate a total revenue of more than US$17bn with about 45,000 employees.
“The acquisition of Viessmann Climate Solutions is a game-changing opportunity,” said Carrier chairman and CEO David Gitlin. “Climate change, sustainability requirements and geopolitical factors are driving an unprecedented energy transition in Europe. Accelerated by government regulations and incentives, the transition creates a significant, long-term growth opportunity.”
With 70% of Viessmann Climate Solutions’ business consisting of heat pumps and related accessories, solar PV, batteries and services, it is regarded by Carrier as a “critical leader” in Europe’s energy transition.
“The Viessmann Climate Solutions acquisition and planned exit of Fire & Security and Commercial Refrigeration will further simplify our business portfolio and accelerate our strategy to establish Carrier as the global leader in intelligent climate and energy solutions,” continued Gitlin.
“Recent strategic actions, including the Toshiba Carrier Corporation acquisition and the sale of Chubb, have aligned our company with the most significant megatrends impacting the heating and cooling industry, including managing climate change and delivering on net zero emissions targets.
“While Fire & Security and Commercial Refrigeration are great businesses with incredible, customer-focused teams, the planned exits sharpen the strategic focus Carrier has gained through its 2020 spin-off from United Technologies.”
Viessmann CEO Max Viessmann will join the Carrier board at closing, which is expected around the end of this year.
Carrier says it expects to sell its Commercial Refrigeration and Fire & Security businesses over the course of 2024 using the proceeds to “reduce leverage consistent with an investment-grade profile” and to repurchase the equivalent shares issued to the Viessmann family.
The planned exits do not include UTEC, Fire & Security’s controls business for residential HVAC customers, or Carrier Transicold’s transport refrigeration, Profroid mechanical systems and Sensitech monitoring businesses.
Global leader
Viessmann Climate Solutions’ leading position in Europe coupled with Toshiba and Giwee’s positions in Asia and Carrier’s in the Americas provides the company with established leadership positions in all attractive segments in all major geographies.
“The planned exits from the Fire & Security and Commercial Refrigeration businesses will reduce operational complexity and sharpen focus. The outcome will be a Carrier with market-leading positions globally with a higher growth profile,” Carrier said in a statement.
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