Dec. 8 (UPI) — Carrier Global Corporation said Friday it plans to sell its Global Access Solutions security business to Honeywell for $4.95 billion. Honeywell confirmed the deal in an all-cash transaction.
“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,” Carrier Chairman and CEO David Gitlin said in a statement.
Honeywell CEO Vimal Kapur said in a statement, “By leveraging the capabilities of the combined company’s advanced security and safety systems, customers will be able to maximize their performance, efficiency and cost-effectiveness and create long-term, sustainable value.”
Honeywell said the acquisition is a natural fit that “will strengthen Honeywell’s strategic alignment to the megatrend of automation, underpinned by digitalization.”
The deal includes both hardware and software security solutions.
Carrier’s Global Access Solutions business has 1,200 employees operating in 33 countries. It’s unclear whether those jobs will all remain intact when the deal goes through.
Carrier said it expects to net approximately $4 billion in the deal, which will be used to pay down debt.
The deal is expected to close by the end of the third quarter 2024 subject to regulatory approval, according to Honeywell.
The company said this acquisition adds three brands to Honeywell’s portfolio. They are LenelS2, Onity and Supra.
LenelS2 offers security solutions like OnGuard and NetBox, used by some Fortune 100 companies. Onity offers various types of electronic locks, used by nine of the 10 top hotel chains. Supra operates cloud-based electronic real estate lockboxes and is described by Honeywell as “a leading digital platform to optimize scheduling for property showings.”
