Honeywell International Plans To Acquire Carrier Global Corporation's Global Access Solutions Business for $4.95B, In All-Cash Transaction, Purchase Price Represents 13x 2023E EBITDA, Transaction Wil Close In Q3, 2024
Portfolio Pulse from Benzinga Newsdesk
Honeywell International Inc. is set to acquire the Global Access Solutions business of Carrier Global Corporation for $4.95 billion in an all-cash transaction. The purchase price is equivalent to 13 times the estimated 2023 EBITDA for the business. The transaction is expected to close in the third quarter of 2024.
December 08, 2023 | 11:51 am
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Carrier Global Corporation is selling its Global Access Solutions business to Honeywell for $4.95 billion, a transaction valued at 13 times the estimated 2023 EBITDA, set to close in Q3 2024.
Carrier's divestiture of the Global Access Solutions business for $4.95 billion is likely to be seen as a positive move, unlocking value and providing significant cash. The valuation at 13 times EBITDA may be seen as favorable for Carrier. The impact on the stock may be positive in the short term, reflecting the influx of cash and streamlining of operations.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Honeywell's planned acquisition of Carrier's Global Access Solutions for $4.95B represents a strategic expansion, paid for in cash, and is expected to close in Q3 2024.
The acquisition is likely to be viewed positively as it represents a strategic expansion for Honeywell. The all-cash nature of the deal suggests a strong financial position. However, the impact may be slightly tempered by the fact that the deal will close in the future (Q3 2024), and the purchase price represents a significant EBITDA multiple.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80