Carrier sells refrigeration business to Haier
13th December 2023
USA/CHINA: Carrier Global Corporation has entered into a definitive agreement to sell its Carrier Commercial Refrigeration business to Chinese manufacturer Haier for $775m.
Carrier announced plans to exit its Commercial Refrigeration business, along with its Fire & Security interests, when it acquired German manufacturer Viessmann in April.
The deal with Haier, which includes approximately $200m of net pension liabilities, represents about 16.5x 2023 expected EBITDA.
Haier has valued its 100% equity acquisition at approximately $640m which, it says, represents 11x P/E.
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.
The two companies have operated a joint venture business, Qingdao Haier-Carrier Refrigeration Equipment Co, since 2001. The JV is committed to providing advanced energy-saving systems, including CO2 refrigeration systems, for customers in the Asia Pacific region.
“Following our decision to exit the commercial refrigeration business and a robust competitive process, we identified Haier as the right fit to grow the business moving forward, building upon our successful 22-year refrigeration partnership with them,” said Carrier chairman and CEO David Gitlin.
“Executing this definitive agreement demonstrates continued progress in our portfolio transformation, further positioning Carrier as the global leader in intelligent climate and energy solutions. 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.”
Li Huagang, chairman and CEO of Haier Smart Home, said: “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.”
The transaction is expected to close in the second half of 2024.
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