Carrier Global Sells Commercial And Residential Fire Business For $3B, Proceeds To Be Utilized For Stock Buybacks
Portfolio Pulse from Lekha Gupta
Carrier Global Corporation (NYSE:CARR) announced the sale of its Commercial and Residential Fire business to Lone Star Funds for $3 billion. The proceeds will be used for stock buybacks. This move is part of Carrier's portfolio transformation, following the acquisition of Viessmann Climate Solutions and other divestitures. The transaction is expected to close by the end of 2024, subject to regulatory approvals. Carrier has significantly reduced its net debt and plans to use the estimated $2.2 billion in net proceeds for share repurchases. The company aims to become a focused, agile, higher-growth, pure-play company.
August 16, 2024 | 1:00 pm
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POSITIVE IMPACT
Carrier Global Corporation is selling its Commercial and Residential Fire business for $3 billion to Lone Star Funds. The proceeds will be used for stock buybacks, which could positively impact the stock price in the short term.
The sale of the business unit and the subsequent use of proceeds for stock buybacks are likely to positively impact Carrier's stock price. Stock buybacks generally reduce the number of shares outstanding, potentially increasing the value of remaining shares.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Carbon Collective Climate Solutions U.S. Equity ETF (CCSO) includes Carrier Global Corporation in its portfolio. The sale of Carrier's business unit and planned stock buybacks could positively impact CCSO's performance.
CCSO holds shares of Carrier Global Corporation. Positive developments for Carrier, such as the business sale and stock buybacks, could enhance the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
First Trust US Equity Opportunities ETF (FPX) holds shares of Carrier Global Corporation. The sale of Carrier's business unit and planned stock buybacks could positively impact FPX's performance.
FPX holds shares of Carrier Global Corporation. Positive developments for Carrier, such as the business sale and stock buybacks, could enhance the ETF's performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50