Introduction
Today, Honeywell announced intentions to extend and improve its building automation Business capabilities through the all-cash $4.95 billion acquisition of Global Access Solutions, a division of Carrier Global Corporation Business.
Dec. 8, 2023, Palm Beach Gardens, Florida /PRNewswire/-carrier Global. corporation(NYSE: CARR), a leader in the world of intelligent energy and climate solutions, announced today that it has finalized plans to sell its security division, Global Access Solutions, which comprises the top brands in the LenelS2, supra, and only to Honeywell (NASDAQ: HON) for an enterprise value of $4.95 billion, or roughly 17 times projected EBITDA through 2023. The sale agreement represents a fruitful beginning for Carrier’s Portfolio transformation.
Carrier’s Global Access Solutions division, which employs around 1,200 people and operates in 33 countries, is a cutting-edge global leader in electronic locking systems, contactless mobile key solutions, and advanced access and security solutions.
The company will be able to expand on the strength of its leading brands, creative solutions, solid partner relationships, and significant development potential thanks to the impending sale.
David Gitlin, chairman and CEO of Carrier, said, “Global Access Solutions is a fantastic company with committed, customer-focused teams, and we look forward to watching its continued growth under Honeywell’s ownership.”
“The transaction, together with the planned exits of our Industrial Fire, Residential and Commercial Fire, and Commercial Refrigeration cabinet businesses, will accelerate our growth strategy and focus, positioning Carrier to deliver higher growth and superior shareholder value and further reinforcing our track record of performing while transforming.”
The carrier estimates that the purchase will bring in about $4 billion in net proceeds, which it plans to use to settle debt. The company plans to start buying back shares as soon as its net leverage is back to about twice EBITDA.
Carrier anticipates classifying the Global Access Solutions company as “held for sale” on the balance sheet starting in the fourth quarter of 2023; nevertheless, the business will continue to produce results up until the sale closes Business
The proposed sale is contingent upon customary closing conditions and regulatory approvals. It is anticipated to close before Q3 2024 comes to an end.
About Carrier
Leading provider of intelligent energy and climate solutions worldwide, Carrier Global Corporation is dedicated to developing solutions that will benefit present and future generations as well as the environment.
We have been at the forefront of creating new technology and whole new industries since the beginning. Our world-class, diversified team places the client at the center of all we do, which is why we continue to lead today. Visit for additional details at www.corporate.carrier.com or follow the carrier on social media at @ carrier.
Cautionary Statement
The statements in this communication, to the extent that they do not represent historical or current facts, are considered “forward-looking statements” as defined by the securities laws. Based on widely accepted assumptions, these forward-looking statements are meant to convey management’s current views or intentions for Carrier’s future operating and financial performance.
Words like “believe,” “expect,” “expectations,” “plans,” “strategy,” “prospects,” “estimate,” “project,” “target,” “anticipate,” “will,” “should,” “see,” “guidance,” “outlook,” “confident,” “scenario,” and other words with similar meanings used about a discussion of future operating or financial performance can be used to identify forward-looking statements.
Among other things, comments about the sale of our security business, anticipated uses of the net revenues therefrom, plans or transactions of Carrier, intentions made by Carrier regarding its debt, and other claims that are not based on historical facts.
Every forward-looking statement has risks, uncertainties, and other elements that might lead to actual results that are very different from those stated or suggested in the statements. See Carrier’s reports on Forms 10-K, 10-Q, and 8-K filed with or furnished to the U.S. Securities and Exchange Commission from time to time for further details on identifying factors that might cause actual results to differ substantially from those represented in forward-looking statements.
Any forward-looking statement is only accurate as of the date it is made, and Carrier disclaims all responsibility to update or modify it in light of new information, events in the future, or other circumstances, unless it is necessary.
What is Global Access Business Solutions?
Under the recognizable trademarks LenelS2, Supra, and Onity, Global Access Solutions is a top supplier of electronic access control and security solutions. These companies provide a wide spectrum of industry clients with a wide range of security products, such as electronic locks, mobile credentialing solutions, and access control systems.
Honeywell’s Acquisition Strategy:
In contrast, Honeywell sees the acquisition of GAS as a calculated effort to improve its standing in the quickly expanding building security industry. Through this deal, Honeywell will have access to
Industry-leading brands and cutting-edge technologies: Honeywell’s building security portfolio will be improved by GAS’s cutting-edge brands and technologies.
Increased market reach: As a result of the acquisition, Honeywell will be able to reach new customer segments and a larger market share in the access control industry.
Opportunities for cross-selling: Honeywell believes that GAS’s clientele might benefit from a cross-selling of its current building automation and fire protection products.
Conclusion:
Carrier has seen a dramatic shift with the sale of GAS, as it now has a stronger emphasis on its core HVAC and automation operations. Honeywell sees the acquisition as a tactical chance to maintain its market-leading position in the building security industry. It will be interesting to see how this purchase affects the future of building security as the sector develops further.