Fire Sale: Carrier Global Divests Industrial Fire Unit For $1.425B In Portfolio Shake-Up
Portfolio Pulse from Shivani Kumaresan
Carrier Global Corporation (NYSE:CARR) has agreed to sell its Industrial Fire business to Sentinel Capital Partners for $1.425 billion, as part of its portfolio transformation. This follows Carrier's acquisition of Viessmann Climate Solutions and sales of its Global Access Solutions and Commercial Refrigeration businesses. The proceeds will be used to pay down debt, with the transaction expected to close in Q3 2024. Carrier had $10 billion in cash and equivalents as of the end of 2023. CARR shares dipped slightly in premarket trading.
March 05, 2024 | 1:37 pm
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Carrier Global Corporation sells its Industrial Fire business for $1.425 billion as part of its strategic portfolio transformation, aiming to use the proceeds for debt reduction.
The sale of the Industrial Fire business is a strategic move by Carrier to streamline its operations and focus on higher growth areas. The decision to use the proceeds for debt reduction is likely to be viewed positively by investors, as it strengthens the company's balance sheet. However, the slight dip in premarket trading suggests a mixed initial reaction, possibly due to concerns over the divestiture of a profitable unit or the specifics of the deal. Over the short term, the impact on CARR's stock price is likely to be positive as the market digests the strategic benefits of the sale.
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