Carrier Global Corporation, a provider of healthy, safe, sustainable and intelligent building and cold chain solutions, announced it has completed the sale of its Chubb fire and security business to APi Group Corporation for an enterprise value of $3.1 billion. The sale enables Carrier to focus on its core businesses and to re-allocate the net proceeds consistent with its stated capital allocation priorities, including funding organic and inorganic growth, a growing and sustainable dividend, and share repurchases while maintaining an investment grade credit rating.
Carrier’s global fire and security products business is not included in this transaction with APi Group and remains a part of the portfolio and the company’s healthy, safe, sustainable and intelligent building strategy.
“The sale of Chubb enhances the growth, margin and free cash flow profile of Carrier,” said Carrier Chairman & CEO Dave Gitlin. “We will continue to drive growth in our core business and play offense on capital deployment, including evaluating inorganic opportunities to complement our existing portfolio, share repurchase and the 25 percent increase in our dividend announced in December 2021. I want to thank the thousands of Chubb employees for their contributions to the business over the years.”
BofA Securities acted as financial advisor to Carrier, and Paul, Weiss, Rifkind, Wharton & Garrison and Linklaters acted as external legal counsel.