UTC to spin off Carrier business
USA: Air conditioning and refrigeration equipment manufacturer Carrier is to become a separate independent company after parent United Technologies (UTC) announced its spin off yesterday.
The previously-rumoured move follows UTC’s completion of the purchase of aerospace company Rockwell Collins, making UTC an industry-leading aerospace systems supplier.
As a result, UTC says it now intends to separate into three independent companies by spinning off its Carrier and Otis elevator businesses.
“Our decision to separate United Technologies is a pivotal moment in our history and will best position each independent company to drive sustained growth, lead its industry in innovation and customer focus, and maximise value creation,” said UTC chairman and CEO Gregory Hayes.
Currently known as Climate, Controls & Security (CCS), Carrier is a leading global provider of HVAC, refrigeration, fire, security and building automation technologies with sales of $17.8bn in 2017. The company’s portfolio includes industry-leading brands such as Carrier, Kidde, Edwards, LenelS2 and Automated Logic.
Gregory Hayes will oversee the transition and will continue in his current role as UTC chairman and CEO following the separation, which is expected to be completed in 2020.
“I’m confident that each company will continue our proud history of performance, excellence and innovation while building an even brighter future,” said Hayes. As standalone companies, United Technologies, Otis and Carrier will be ready to solve our customers’ biggest challenges, provide rewarding career opportunities, and contribute positively to communities around the world.”
UTC says the three independent companies “will be appropriately capitalised” with the financial flexibility to take advantage of future growth opportunities. “Each business,” it says, “will be better positioned to pursue a capital allocation strategy more suitable to its respective industry and risk and return profile, and enjoy greater flexibility with an independent equity currency and more appropriately aligned management and employee incentives.”
Carrier’s founder Willis Carrier, credited by many with the invention of modern air conditioning, established Carrier Engineering Corporation in 1915. The company was acquired by United Technologies Corporation in July 1979.